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please provide detail on how to get to answer 57. The realistic alternative to high interest rates is not lower interest rates (except temporarily) but
please provide detail on how to get to answer
57. "The realistic alternative to high interest rates is not lower interest rates (except temporarily) but even higher interest rates and a monetary inflation that would make our heads spin." Which of the following statements seems out of place in this context? a) the Fed can raise interest rates by selling bonds and the lower them by buying bonds TRU Open Learning ECON 1951: Principles of Macroeconomics MC12-17 b) targeting on the interest rate is a dangerous monetary policy in inflationary environments c) the Fed could become caught up in a vicious cycle of increasing the money supply to lower the interest rate leading to higher inflationary expectations and higher interest rates d) lowering interest rates in an inflationary environment requires lowering inflation which requires a restrictive monetary policy producing initially a higher interest rateStep by Step Solution
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