If the government sells U.S.Treasury bonds to finance its budget deficit, one would expect:

Name: If the government sells U.S.Treasury bonds to finance its budget deficit, one would expect:
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

When the government sells U.S. Treasury bonds to finance its budget deficit, the supply of bonds in the market increases, thereby reducing their price and increasing their yield. This increase in yield leads to higher interest rates in the economy.

If the Government Sells U