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1-Interest rates and riskiness are inversely related. TRUE FALSE 2-The FOMC has instructed the FRBNY Trading Desk to sell $500 million in US Treasury securities.
1-Interest rates and riskiness are inversely related.
TRUE
FALSE
2-The FOMC has instructed the FRBNY Trading Desk to sell $500 million in US Treasury securities. How will this impact the equilibrium interest rate?
a-Equilibrium interest rate will increase
b-Equilibrium interest rate will decrease
c-Equilibrium interest rate will stay the same
d-Equilibrium interest rate will shift
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