The process of bundling loans together and buying and selling these bundles in a secondary financial market is called
A) seigniorage. B) securitization.
C) open market operations. D) fractional reserve lending.
Question 2
If wages and prices adjust rapidly, we would expect expansionary monetary policy to be
A) more likely to affect the unemployment rate.
B) more likely to reduce the natural rate of unemployment.
C) less likely to affect the unemployment rate.
D) less likely to result in a vertical short-run Phillips curve.
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