We would expect which of the following to occur when the central bank pursues expansionary monetary policy?
A) No change in bond prices and a decrease in i.
B) A decrease in bond prices and a decrease in i.
C) An increase in bond prices and a decrease in i.
D) A decrease in bond prices and an increase in i.
E) An increase in bond prices and an increase in the interest rate (i) .
Correct Answer:
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