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Author Question: A market is an arrangement that allows people to exchange things. Indicate whether the statement ... (Read 78 times)

jerry coleman

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on: Jun 30, 2018
A market is an arrangement that allows people to exchange things.
 
  Indicate whether the statement is true or false

Question 2

If there are no changes in inflation expectations, a purchase of government bonds by the Fed in the open market will cause ________.
 
  A) the federal funds rate to rise and the long-run expected real interest rate to fall
  B) both the federal funds rate and long-run expected real interest rate to fall
  C) both the federal funds rate and long-run expected real interest rate to rise
  D) the federal funds rate to fall and the long-run expected real interest rate to rise
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
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shoemake

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Reply #1 on: Jun 30, 2018
Answer to Question 1

TRUE

Answer to Question 2

B


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