In recent years,the Chinese government has _____________ bonds issued by the U.S.government which has _____________ interest rates in the United States beyond what they would have been otherwise.

Question

Quizplus · Accepted Answer

The Chinese government has bought bonds issued by the U.S. government, which increases demand for these bonds and thus lowers their interest rates. This means that the Chinese government has effectively lowered interest rates in the United States beyond what they would have been otherwise. Option B is incorrect because buying bonds would not raise interest rates. Similarly, selling bonds (options C and D) would not lead to lower interest rates.

In Recent Years,the Chinese Government Has _____________ Bonds Issued by the U.S.government