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Author Question: The Fed can influence long-term interest rates by (Read 43 times)

Starlight

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on: Apr 19, 2019

Question 1

The interest rate on a two-year security will continue to adjust until it is equal to


◦ half the interest rate on a one-year security.
◦ twice the interest rate on a one-year security.
◦ an average of the current one-year rate and the expected one-year rate for next year.
◦ the sum of the current one-year rate and the expected one-year rate for next year.

Question 2

The Fed can influence long-term interest rates by


◦ influencing the current one-year rate.
◦ affecting people's expectations of future short-term rates.
◦ influencing the demand for money in the short run.
◦ Both influencing the current one-year rate and affecting people's expectations of future short-term rates are correct.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Starlight on Apr 19, 2019

Kjones0604

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Starlight

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Reply 2 on: Apr 19, 2019
Excellent

6ana001

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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