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Often times money and banking will influence the government, and government policy often address money and banking matters. The president of the United States announces
Often times money and banking will influence the government, and government policy often address money and banking matters. The president of the United States announces in a press conference that she will fight the higher inflation rate with a new anti-inflation program. Predict what will happen to interest rates if the public believes her. Specifically, answer the following (3 points each) A) interest rates will fall or rise? B) expected inflation will fall or rise? C) the demand curve shifts to the left or right? D) the supply of bonds will fall or rise? E) the equilibrium interest rate will fall or rise
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