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The economy suffered a mild recession in 2001. Despite the recession, home sales and durable goods ...

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The economy suffered a mild recession in 2001. Despite the recession, home sales and durable goods ...

The economy suffered a mild recession in 2001. Despite the recession, home sales and durable goods sales remained high. Which of the following is a plausible explanation?
A) The Fed's pursuit of contractionary policy stimulated these markets.
B) The Fed caused a reduction in the federal funds rate to its lowest level in 40 years.
C) Rising inflation encouraged many to invest in the real estate market.
D) Home building and consumer durable purchases are always high durinAnswer: ssion.

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InMacro

Edition: 1^st

Authors: Hubbard, O'Brien

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leavemealone

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More solutions for this book are available here

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