2006-12-21 17:38:43 · 3 answers · asked by kevin21boston 2 in Social Science ➔ Economics
The more bonds the government wants to sell, the higher the interest rate will be.
2006-12-22 05:23:42 · answer #1 · answered by NC 7 · 0⤊ 0⤋
As more government bonds are sold their is less money available to invest. In order to compete interest rates would go up.
The more attractive the Government bond (safe/secure/yield) the more interest rates would have to compete.
2006-12-21 18:42:53 · answer #2 · answered by JuanB 7 · 0⤊ 0⤋
I have found a result from yahoo,about How does the Government sale of bonds affect interest rates Yahoo searching link:
http://rds.yahoo.com/_ylt=A9FJqzjX9oRFQm0BDqPal8kF/SIG=11atfeh45/EXP=1166428247/**%68%74%74%70%3A%2F%2F%77%77%77%2E%6C%6F%67%61%62%63%2E%63%6F%6D
2006-12-21 17:40:03 · answer #3 · answered by jjjjjjs 1 · 0⤊ 1⤋