Suppose the U. S. Treasury issued $50 billion of short-term securities and sold them to the public. Other things held constant, wh would be the most likely effect on short-term securities' prices and interest rates? A. There is no reason to expect a change in either prices or interest rates. B. Prices and interest rates would both decline. C. Prices and interest rates would both rise. D. Prices would decline and interest rates would rise. E. Prices would rise and interest rates would decline.

Question

Taniyah Mcbride

Business

16 December, 05:42

Suppose the U. S. Treasury issued $50 billion of short-term securities and sold them to the public. Other things held constant, wh would be the most likely effect on short-term securities' prices and interest rates? A. There is no reason to expect a change in either prices or interest rates. B. Prices and interest rates would both decline. C. Prices and interest rates would both rise. D. Prices would decline and interest rates would rise. E. Prices would rise and interest rates would decline.

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Izaiah Byrd · Answer 1

D. Prices would decline and interest rates would rise.

Explanation:

since the U. S. Treasury issued $50 billion of short-term securities and sold them to the public the will be a lot of supply and the demand will be low.

As a results of that orice will decrease and hence to kepp hold of that the price will decrease and the intreset rates would rise.