Which of the following was the result of the Federal Reserve's purchase of mortgage-backed securities in 2009?
A) MBS interest rates declined, home mortgage rates declined, and the Fed turned a profit on these operations.
B) MBS interest rates declined, home mortgage rates declined, but the Fed had a loss on these operations.
C) MBS interest rates increased, home mortgage rates declined, and the Fed turned a profit on these operations.
D) MBS interest rates increased, home mortgage rates increased, but the Fed had a loss on these operations.
Correct Answer:
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