Which of the following is likely to happen if the Fed buys Treasury securities from banks?a. interest rate rises; investment fallsb. interest rate rises; investment risesc. interest rate falls; investment risesd. interest rate falls; investment falls

c. interest rate falls; investment rises

Explanation:

The Fed buying treasury securities from banks is an expansionary policy when the government wants to increase the money in circulation and increase economic growth.

When the Fed buys Treasury securities from banks, this will lead to availability of funds as prices will be pushed higher and there will be a reduction in the interest rate.

Since there is reduction in interest rate, investment will increase as investors will borrow from banks.

answer; ///(d) stand out from all of the others;

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