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Assume you are a bank manager that is tasked with setting long - term interest rates. When the chair of the Fed announces plans to
Assume you are a bank manager that is tasked with setting longterm interest rates. When the chair of the Fed announces plans to keep the federal funds rate low for an extended period of time, competition with other banks will make you:
a lower your longterm rates down.
b abandon your loan program because lending will be unprofitable.
C expand your loan program because lending will become more profitable.
d raise your longterm rates.
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