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-In the Above Figure, If We Begin at S2 and the Fed

Question 261

Multiple Choice

-In the above figure, if we begin at S2 and the Fed buys bonds A) the price of bonds falls, and the interest rate rises. B) the price of bonds falls, and so does the interest rate. C) the price of bonds rises, and so does the interest rate. D) the price of bonds rises, and the interest rate falls.
-In the above figure, if we begin at S2 and the Fed buys bonds


A) the price of bonds falls, and the interest rate rises.
B) the price of bonds falls, and so does the interest rate.
C) the price of bonds rises, and so does the interest rate.
D) the price of bonds rises, and the interest rate falls.

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