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If the Fed Conducted an Open Market Sale of Bonds,what

Question 64

Multiple Choice

If the Fed conducted an open market sale of bonds,what would most likely happen in the bond market?


A) The excess demand for bonds would cause the price of bonds to fall.
B) The excess supply of bonds could cause the price of bonds to rise.
C) There would be no effect in the bond market.
D) The excess supply of bonds would cause the price of bonds to fall.
E) The excess demand for bonds would cause the price of bonds to rise.

Correct Answer:

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