Suppose the Fed conducts an open market sale of bonds. This monetary policy action will tend to cause
A) the price of bonds to increase and the interest rate to increase.
B) the price of bonds to increase and the interest rate to decrease.
C) the price of bonds to decrease and the interest rate to increase.
D) the price of bonds to decrease and the interest rate to decrease.
C
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Define what is meant by a positive or direct relationship between two variables and describe the line graph depicting such a relationship
Please provide the best answer for the statement.
Using Figure 7.4, expected inflation was
A. The same in 1970 and 1995. B. Greater in 1970 than in 1995. C. Greater during the period from 1970 to 1975 than it was during the period from 1980 to 1985. D. Greater during the period from 1980 to 1985 than it was during the period from 1970 to 1975.