Multiple Choice
If the Fed sells government securities, in the short run the nominal interest rate ________ and the real interest rate ________.
A) rises; rises
B) does not change; rises
C) falls; falls
D) rises; does not change
E) rises; falls
Correct Answer:

Verified
Correct Answer:
Verified
Q29: When the Fed worries about inflation,it _
Q126: During the late 1960s,real GDP increased,unemployment fell,and
Q138: If the Fed lowers the interest rate,then<br>A)only
Q140: What is the main difference between an
Q142: When the Fed lowers the federal funds
Q143: The interest rate banks charge each other
Q144: When the Fed raises the federal funds
Q146: Consumer confidence in the economy falls, and
Q147: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1454/.jpg" alt=" -The figure above
Q149: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1454/.jpg" alt=" The figure