During the financial crises and recession of 2007-09, the Fed lowered the federal funds rate target to 0-0.25%. However, long-term interest rates, like mortgage rates, were still fairly high. One thing the Fed did to lower long-term rates was that the Fed:

Question 16 options:

	bought more long-term bonds, which will lower bond prices.
	decreased their demand for long-term bonds, which will lower bond prices.
	decreased their demand for long-term bonds, which will raise bond prices.
	bought more long-term bonds, which will increase bond prices.