Question: 24. An article in the WSJ once reported that numerous countries were adjusting their financial portfolios by reducing their purchases of US Treasuries and
24. An article in the WSJ once reported that numerous countries were adjusting their financial portfolios by reducing their purchases of US Treasuries and in some cases not purchasing at all but instead actually reducing their holdings of US Treasuries. Which of the following statements are trufe A. An increase in r can be averted if the FED purchases the bonds that are being sold B. A decrease in r can be averted if the FED purchases the bonds that are being sold C. An increase in bond prices can be averted if the FED purchases the bonds that are being sold D. An increase in bond prices can be averted if the FED enters on the selling side of the bond market E. None of the above
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