We Would Expect Which of the Following to Occur When

question 36

Multiple Choice

We would expect which of the following to occur when the central bank pursues contractionary monetary policy?

• A)an increase in bond prices and an increase in the interest rate (i)
• B)a reduction in bond prices and an increase in i
• C)an increase in bond prices and a reduction in i
• D)a reduction in bond prices and a reduction in i
• E) none of the above

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Definitions:

Optic Nerve

The nerve that transmits visual information from the retina to the brain.

Lens

A transparent structure in the eye that focuses light onto the retina to create clear images.

Lens

A transparent optical device used to converge or diverge transmitted light and to form images.

Round

Having a shape or cross-section that is circular or nearly circular; often used to describe objects or shapes.