Which diagram provides an accurate example of how the government uses open market operations?
O A.
The government
sells more
Treasury bonds
than it buys.
The money
supply is
decreased.
B.
The government
buys more
Treasury bonds
than it sells.
Banks charge
less to
consumers to
borrow money.
The government
buys more
Treasury bonds
than it sells.
1
Interest rates
rise.
The money
The government
buys more
Treasury bonds
than it sells.
supply is
decreased
O