Assume that the Treasury experiences a large decrease in the budget deficit and purchases a large number of short-term Treasury securities (Treasury bills or T-bills). This action will ____ the supply of T-bills in the market and place ____ pressure on the yield of T-bills.
A)decrease; downward
B)decrease; upward
C)increase; upward
D)increase; downward

Question

Quizplus · Accepted Answer

The Answer of Assume that the Treasury experiences a large decrease in the budget deficit and purchases a large number of short-term Treasury securities (Treasury bills or T-bills). This action will ____ the supply of T-bills in the market and place ____ pressure on the yield of T-bills.
A)decrease; downward
B)decrease; upward
C)increase; upward
D)increase; downward

Assume That the Treasury Experiences a Large Decrease in the Budget