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Suppose that the FOMC chair makes an official public statement that substantially increases investor expectations for faster economic growth, but which does not change the
Suppose that the FOMC chair makes an official public statement that substantially increases investor expectations for faster economic growth, but which does not change the administered rates or what the Fed has been doing with respect to quantitative easing, open-market operations, and other monetary policy actions. Which of the following statements is the most likely effect of this announcement on the investment demand curve? (Hint. Recall the difference between a movement along a curve and a shift of a curve.) multiple choice The investment demand curve would shift to the right. The investment demand curve would shift to the left. There would be a movement downward along the demand curve. There would be a movement upward along the demand curve. There would be no significant impact on the demand curve.The Fed was designed to be insulated from political pressure so that it might take a _________blank perspective and be immune from lobbying and special interest groups. Without protection from political pressure, the Fed may be influenced to take an overly _________blank monetary policy to keep politicians and special interest groups happy
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