One Criticism of the Fed's Quantitative Easing Policy Is That

Multiple Choice

One criticism of the Fed's quantitative easing policy is that a prolonged period of low interest rates could lead to speculative bubbles.Some economists argued that as interest rates fell and prices of long-term Treasury bonds rose,financial markets were experiencing a "Treasury bubble." These economists worried that investors,banks,other financial firms,and pension funds were underestimating the likelihood that long-term interest rates would eventually ________,causing substantial ________ in the prices of Treasury bonds.

A) rise; declines
B) rise; increases
C) fall; declines
D) fall; increases