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question 148

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


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