If the Fed decides to buy bonds, the result will be A) lower ...

[fox]

If the Fed decides to buy bonds, the result will be
 
  A) lower bond prices and higher interest rates. B) higher bond prices and higher interest rates.
  C) higher bond prices and lower interest rates. D) lower bond prices and lower interest rates.

Question 2

What are the macroeconomic consequences of a budget deficit when the economy is operating at full employment? Be sure to discuss the effects in the short-run and in the long-run.
 
  What will be an ideal response?

[aadams68]

Answer to Question 1

C

Answer to Question 2

In the short run, a budget deficit will create an inflationary ga

[fox]

Wow, this really help

[aliotak]

Great answer, keep it coming