Figure 11-1 
-Refer to Figure 11-1. Suppose the Fed takes action that shifts the demand curve from D to D′, as illustrated in Panel (a) . What happens to the interest rate?
A) It will increase.
B) It will decrease.
C) It remains unchanged.
D) Short-term interest rates will decrease but long-term interest rates will increase.
Correct Answer:
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Q1: The congressional act passed in 1978 that
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