Suppose a new and much more liberal Congress and administration were elected, and their first order of

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Suppose a new and much more liberal Congress and administration were elected, and their first order of business was to take away the independence of the Federal Reserve System, and to force the Fed to greatly expand the money supply. What effect would this have?

a. On the level and slope of the yield curve immediately after the announcement?

b. On the level and slope of the yield curve that would exist two or three years in the future?

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Financial management theory and practice

ISBN: 978-0324422696

12th Edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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