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
B
You might also like to view...
Because women have a longer average life span than men, they pay
A) more for health insurance. B) less for health insurance. C) more for life insurance. D) less for life insurance.
Access to the movie "Casablanca," showing in a half-empty theater, is
A) a public good because individuals watch movies together. B) a public good only if the theater is run by the government. C) not a public good because it is a rival good. D) not a public good because it is an exclusive good. E) not a public good because it is both a rival good and an exclusive good.