The Fed's purchase and sale of government securities is known as

A rise in short-term interest rates that is believed to be only temporary

A) is likely to have a significant effect on long-term interest rates. B) will have a bigger impact on long-term interest rates than if the rise in short-term rates had been permanent. C) is likely to have only a small impact on long-term interest rates. D) cannot possibly affect long-term interest rates.

Which of the following will cause a reduction in current consumption?

A) a reduction in current disposable income B) a reduction in financial wealth C) a reduction in human wealth D) all of the above E) both B and C