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Suppose that the Federal Reserve sells Treasury bills. We can expect this transaction to _____ the money supply, _____ Treasury bill prices, and _____ interest rates.

User Mwjackson
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1 Answer

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Answer:

increase; raise; lower

Step-by-step explanation:

In the case when the treasury bills purchased that represents there is an money injection in the economy this results in rise in the money supply due to which the rate of interest would reduced. Also if the purchase of the treasury bills would rise this represents that the treasury demand would rise that results rise in the Treasury bills price

so the above is the answer

User Todd Carter
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