Question: Assume that the Treasury experiences a large decrease in the budget deficit and purchases a large number of T-bills. This action will ____ the supply

  1. Assume that the Treasury experiences a large decrease in the budget deficit and purchases a large number of T-bills. This action will ____ the supply of T-bills in the market and places ____ pressure on the yield of T-bills.

a. decrease; downward

b. decrease; upward

c. increase; upward

d. increase; downward

need to offer a brief justification

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