The treasury currently had a 09 trillion dollar deficit in, Ask an Expert

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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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Financial Management, Finance

Category:- Financial Management
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