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Economics
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12 Dec 2019

When the U.S. government sells bonds, bond prices: Select one:

a. increase and the bond interest rates increase.

b. increase and bond interest rates decrease.

c. decrease and bond interest rates increase.

d. decrease and bond interest rates decreas

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Related questions

Federal and state governments will reduce deficit spending by 1.8 trillion this fiscal year. This action will cause which of the following to occur?

a. bond supply to increase

b. bond demand to increase

c. an increase in loanable funds demand

d. an increase in loanable funds supply

e. bond prices decrease

f. interest rates decrease

Federal and state governments will reduce deficit spending by 1.8 trillion this fiscal year. This action will cause which of the following to occur?

A) Bond demand decreases and loanable funds supply increases

B) Bond demand decreases and loanable funds supply decreases

C) Bond demand increases and loanable funds supply decreases

D) Bond prices increase and interest rates decrease

1. Which of the following sequence of events follows an expansionary monetary policy?

A) ↑ interest rate → ↑ investment → ↓ total demand → ↑ real GDP

B) ↓ interest rate → ↓ investment → ↑ total demand → ↑ real GDP

C) ↑ interest rate → ↓ investment → ↓ total demand → ↓ real GDP

D) ↓ interest rate → ↑ investment → ↑ total demand → ↑ real GDP 

 

2. The Fed's efforts to stimulate and make the economy grow to require that the Fed:

A) sell bonds to raise the interest rates.

B) sell bonds to lower the interest rates.

C) buy bonds to lower the interest rates.

D) buy bonds to raise the interest rates.

 

3. An appreciation of the U.S. dollar will likely cause U.S. exports to ________ and U.S. imports to ________.

A) decrease; decrease

B) increase; decrease

C) increase; increase

D) decrease; increase

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