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Author Question: If the U.S. Treasury is forced to sell bills and bonds to the U.S. public to finance deficits, this ... (Read 143 times)

OSWALD

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Question 1

If the Fed buys U.S. Treasury bills and bonds to finance deficits, this means that the government is financing the deficit by


◦ lowering inflation.
◦ raising interest rates.
◦ selling capital.
◦ printing money.

Question 2

If the U.S. Treasury is forced to sell bills and bonds to the U.S. public to finance deficits, this may ________ the price of bonds and ________ the interest rates on the bonds.


◦ drive down; drive down
◦ drive down; drive up
◦ drive up; drive down
◦ drive up; drive up


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Marked as best answer by OSWALD on Apr 19, 2019

raili21

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