If the Fed increases the supply of money in the market, bond prices will _____ and interest rates will _____.

Name: If the Fed increases the supply of money in the market, bond prices will _____ and interest rates will _____.
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Question

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When the Fed increases the money supply, it typically leads to lower interest rates because there is more money available for lending. As interest rates fall, bond prices rise because existing bonds with higher interest rates become more attractive.

If the Fed Increases the Supply of Money in the Market