When the Federal Reserve buys bonds,the supply curve for bonds:
A) does not shift.
B) shifts outward.
C) shifts inward.
D) sometimes shifts inward and sometimes shifts outward.

Question

Quizplus · Accepted Answer

When the Federal Reserve buys bonds, it does not directly affect the supply curve for bonds. Instead, it affects the demand for bonds, as the Fed's purchase increases the demand for bonds, not the supply.

When the Federal Reserve Buys Bonds,the Supply Curve for Bonds