Which of the following is most FALSE? The U.S. had large trade surpluses for about 25 years following World War II, but has had trade deficits since the mid-1970s. In order to increase the money supply and decrease interest rates, the Fed can purchase bonds off of the open market. The spread between yield curves of corporate bonds and Treasury bonds is larger the longer the maturity because the corporate bonds are considered riskier if they have a long time to maturity, and because of this extra risk, they are less liquid. If the Fed lowers rates, it could cause foreigners to sell their U. S. bonds. They would be paid in dollars, which they would then sell, raising the value of the dollar and helping U.S. manufacturers export goods. When the Fed fights a recession by reducing the interest rate, that is known as "firing the gun" to protect the economy