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If there are no changes in inflation expectations, a sale of government bonds by the Fed in the open ...

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If there are no changes in inflation expectations, a sale of government bonds by the Fed in the open ...

If there are no changes in inflation expectations, a sale of government bonds by the Fed in the open market will cause ________.

▸ both the federal funds rate and the long-term expected real interest rate to rise

▸ the federal funds rate to rise and the long-term expected real interest rate to fall

▸ the federal funds rate to fall and the long-term expected real interest rate to rise

▸ both the federal funds rate and the long-term expected real interest rate to fall

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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Brilliant ツ

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