When the Federal Reserve buys bonds,the demand 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 increases the demand for bonds, which shifts the demand curve outward. This is because the Fed's action directly increases the overall demand for bonds in the market.

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