Question
A year later you buy the car and get a good deal overall. The economy seems healthy due to lower interest rates. Now, you are
A year later you buy the car and get a good deal overall. The economy seems healthy due to lower interest rates. Now, you are considering the purchase of a house in the next 12 months. Because you have become interested in business and finance, you read the Wall Street Journal each morning on your tablet. One day a headline blares, "Fed announces emergency program to sell government securities". What is the most likely reason for this policy? a. The Fed's rate cuts worked, but selling government securities provides them another options for increasing money supply. b. The Fed's rate cuts sped up the economy too much and they want to increase money supply to slow it down. c. This is a normal part of the Fed's open market activities. d. The Fed's rate cuts sped up the economy too much and they want to decrease money supply to slow it down. e. The Fed's rate cuts did not work and they want to further expand the economy
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