If there are no changes in inflation expectations, a sale of government bonds by the Fed in the open market will cause ________
A) both the federal funds rate and long-run expected real interest rate to rise
B) both the federal funds rate and long-run expected real interest rate to fall
C) the federal funds rate to fall and the long-run expected real interest rate to rise
D) the federal funds rate to rise and the long-run expected real interest rate to fall
A
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The magnitude of the slope of the budget line is equal to the ________ or ________ of the good plotted on the ________ in terms of the other good
A) relative price; marginal cost; y-axis B) relative price; total cost; y-axis C) relative price; opportunity cost; x-axis D) price; opportunity cost; x-axis
Cost-push inflation is due to:
a. "too much money chasing too few goods". b. the economy operating at full employment. c. increases in production costs. d. all of these.