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Question 76

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Use the following to answer questions .
Exhibit: The Bond Market Use the following to answer questions . Exhibit: The Bond Market -(Exhibit: The Bond Market) Suppose the Fed takes action that shifts the demand curve from S to S′, as illustrated in Panel (b) . What happens to the interest rate? A) It increases. B) It decreases. C) It remains unchanged. D) Short-term interest rates will increase but long-term interest rates will decrease.
-(Exhibit: The Bond Market) Suppose the Fed takes action that shifts the demand curve from S to S′, as illustrated in Panel (b) . What happens to the interest rate?


A) It increases.
B) It decreases.
C) It remains unchanged.
D) Short-term interest rates will increase but long-term interest rates will decrease.

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