Q.

The sale of government bonds overseas:

A. causes a fall in the domestic money supply.
B. causes a deficit in the balance of payments.
C. causes a smaller increase in interest rates than the sale of bonds to the domestic banking sector.
D. causes a smaller increase in interest rates than the sale of bonds to the domestic private sector.
Answer» D. causes a smaller increase in interest rates than the sale of bonds to the domestic private sector.
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