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

Select one:

a.

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

b.

(1) and (2) only.

c.

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

d.

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

e.

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