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Nikola Jokic has observed a recent strengthening of the U.S. economy resulting in greater demand for loanable funds. If that is indeed the case, he

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Nikola Jokic has observed a recent strengthening of the U.S. economy resulting in greater demand for loanable funds. If that is indeed the case, he can expect a(an) pressure on rates. Further, Nicola understands that if the Federal Reserve decides to decrease the moncy supply to combat onsetting inflation, the economy will likely experience a(an) movement by interest rates. upward; upward upward; downward downward; upward downward; downward Question 8 10pts According to the unbiased expectations theory, if investors will adjust perception of economic conditions towards a possibility of higher rates, one should expect this group think will actually lead to the opposite occurring in the market place with rates declining as a result. True False

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