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Q12 Single choice

The Federal Reserve announces that it plans to buy $3.89 billion in Treasury securities on the open market.
All else equal, which of the following is a likely result of this Fed action?

A
Interest rates will rise, causing security prices to fall.
B
Money supply will increase, causing interest rates to fall.
C
Stock and bond prices should increase.
D
Both B and C are likely results of this Fed action.

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