Which of the following explains the implications of the federal government buying back its own debts from the Federal Reserve?(1 point)
The demand for Treasurys from investors and foreign governments could be diminished from the Federal Reserve buying the securities.
The money supply increases, which results in higher interest rates for the national debt, which could increase the amount spent to pay for the interest on the national debt.
The money supply decreases, which could result in a liquidity crisis for the banks and the federal government. Interest rates would decrease to help increase the money supply.
Interest rates on the national debt decrease, which decreases the amount spent to pay for the interest on the national debt. The federal government could pay for social welfare programs.