If the Fed buys U.S. government securities from banks, the ...

[leo leo]

If the Fed buys U.S. government securities from banks, the federal funds rate ________ and banks' reserves ________.
 
  A) does not change; increases
  B) falls; decrease
  C) rises; increase
  D) rises; decrease
  E) falls; increase

Question 2

In the long run, the inflation rate
 
  A) must be equal to the natural unemployment rate.
  B) can take on any value.
  C) is equal to the natural inflation rate.
  D) is zero.
  E) cannot be negative.

[Jordin Calloway]

Answer to Question 1

E

Answer to Question 2

B

[leo leo]

Gracias!

[Mochi]

TYSM