Which diagram provides an accurate example of how the government uses
open market operations?
Ο
Α.
The government
buys more
Treasury bonds
than it sells
The money
supply is
decreased
O
B.
The government
sells more
Treasury bonds
than it buys.
The money
supply is
decreased
The government
buys more
Treasury bonds
than it sell
Banks charge
less to
consumers to
borrow money
O
D.
The government
buys more
Treasury bonds
than it selts
Interest rates
rise