Question

If the Federal Reserve sells $50 billion of short-term U.S. Treasury Securities to the public, other things held constant, what would be the most likely effect on short-term securities prices and interest rate?
a.) Prices will rise and interest rates will decline.
b.) Prices and interest rates will both rise.
c.) Prices will decline and interest rates will rise.
d.) Prices and interest rates will both decline.
e.) There is no reason to expect a change in either prices or interest rates

Answer 1

Answer:

b

Explanation: