The effects of purchase of government bonds from the other market participants by the Central Bank depend on:

Select one:

a.(1), (2) and (3).

b.(3): the expectation of further purchases/sales of government bonds by the Central Bank.

c.(2): whether the purchase has already been anticipated by the market.

d.(1): whether the economy is in a contractionary or expansionary period in the business cycle.

e.(1) and (2) only.