The reduction of the inflation rate is called

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

Refer to Scenario 9.1. The dominant strategy for Sheb is to place ________ sheep on the commons

A) 4 B) 5 C) Sheb's dominant strategy depends on how man sheep Monty places on the commons. D) Sheb has no dominant strategy.