Question
The treasury currently had a $0.9 trillion dollar deficit in Fiscal 2013 so the US government was issuing new long term securities (borrowing to cover
The treasury currently had a $0.9 trillion dollar deficit in Fiscal 2013 so the US government was issuing new long term securities (borrowing to cover the deficit) at an average rate of $75 billion per month. This decreases the money supply which should INCREASE interest rates and LOWER the price of bonds, yet long term interest rates were relatively stable. why?
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Personal Finance
Authors: Jeff Madura
7th Edition
0134989961, 978-0134989969
