In September 2012 the Fed announced that it would buy $40 billion of mortgage backed securities per month. One goal of this policy was to ________ the price of these securities and thereby help ________.
A) raise; prices of housing to fall to their new equilibrium
B) raise; lower long-term interest rates
C) lower; make the short-term interest rate more responsive to Fed actions
D) raise; raise long-term interest rates
Correct Answer:
Verified
Q159: Suppose that the inflation rate is 3
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