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Use the following to answer questions .
Exhibit: The Bond Market Use the following to answer questions . Exhibit: The Bond Market   -(Exhibit: The Bond Market)  Suppose the Fed takes action that shifts the demand curve from S to S′, as illustrated in Panel (b) . What happens to the interest rate? A)  It increases. B)  It decreases. C)  It remains unchanged. D)  Short-term interest rates will increase but long-term interest rates will decrease.
-(Exhibit: The Bond Market) Suppose the Fed takes action that shifts the demand curve from S to S′, as illustrated in Panel (b) . What happens to the interest rate?

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Calculator

An electronic or manual device used for calculating numbers, functions, and mathematical expressions.

Exponents

Exponents indicate how many times a number, the base, is multiplied by itself.

Rational Exponents

Exponents expressed as fractions, representing powers and roots of a base number, and allowing for more complex relationships in algebra.

Expression

A combination of numbers, variables, operators, and sometimes parentheses that represents a quantity or a relationship.

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