Question 3 (1 point) When the Fed increases the interest rate, consumer savings is expected to and the mortgage rate would O increase; decrease O increase; not change decrease; decrease increase; increase decrease; increase Question 4 (1 point) Based on the pure expectations theory, when people expect the interest rates to increase, it would demand in the long-term securities market and supply in the short-term securities market. decrease; increase decrease; decrease increase; increase O increase; decrease O not change; increase Question 5 (1 point) If the current one-year certificate of deposit (CD) rate is 5.3% and the forward rate is 4.5%, how much is the annualized two-year CD rate? 4.89% 2.37% O 6.22% 10.04% 5.49%