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Answer to Question #56835 in Microeconomics for alex

Question #56835
If the Federal Reserve Bank increase the supply of money, which one is correct?

The interest rate will fall and the public will be less willing to buy government securities.

The interest rate will fall and the public will be more willing to buy government securities.

The interest rate will increase and the public will be more willing to buy government securities.

The interest rate will increase and the public will be less willing to buy government securities.
Expert's answer
The interest rate will fall and the public will be more willing to buy government securities.

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