After the Fed began to raise the federal funds rate in 2004:
A) investors quickly sold U.S. treasuries.
B) default on subprime mortgages increased.
C) inflation picked up steam.
D) housing prices recovered and grew, but more slowly than in the previous 10 years.
E) stock markets retreated and fell to all-time lows.
Correct Answer:
Verified
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A) stayed constant.
B) rose
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A) lock
Q34: In _, the Fed began to raise
Q35: Short-run output _ in the last quarter
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Q40: The _ was hastily designed to _
Q41: IMF studies conducted after the financial crisis
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