When the Fed buys bonds in the open market, we can expect
A) bond prices and interest rates to fall.
B) bond prices to rise and interest rates to fall.
C) bond prices to fall and interest rates to rise.
D) bond prices and interest rates to rise.
Ans: B) bond prices to rise and interest rates to fall.
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Suppose that in 2015 you paid $150,000 for a house that was built in 2005 and sold that year for $210,000 . The amount this transaction would add to the GDP in 2015 is
a. $0. b. $60,000. c. $210,000. d. ?$60,000
If consumer purchases of a good are highly sensitive to the price of the good, this is illustrated by a
What will be an ideal response?
If a firm that has total revenue of $5 million shuts down, we may conclude that its variable costs are __________.
Fill in the blank(s) with the appropriate word(s).
What is the economic way of thinking, and why is it important?
What will be an ideal response?