Q. The sale of government bonds overseas: (Solved)
1. causes a fall in the domestic money supply.
2. causes a deficit in the balance of payments.
3. causes a smaller increase in interest rates than the sale of bonds to the domestic banking sector.
4. causes a smaller increase in interest rates than the sale of bonds to the domestic private sector.
- d. causes a smaller increase in interest rates than the sale of bonds to the domestic private sector.