A persistent decline in the price level resulting from economic growth in the presence of stable aggregate demand is known as
A) secular deflation. B) the interest rate effect.
C) the real balance effect. D) demand-side deflation.
Question 2
Which among the following will happen if the Fed buys bonds from a private bank?
A) The private bank's total assets will decrease. B) The Fed's total assets will decrease.
C) The private bank's total assets will increase. D) The Fed's total liabilities will increase.
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