Business, 13.02.2020 23:26 20jacksone

Suppose that the bond market and the money market both start out in equilibrium, then the Federal Reserve increases the money supply. The result will be a in the money market and a in the bond market, which will push bond prices and interest rates will until a new equilibrium is reached.

a) shortage; surplus; down; fall
b) surplus; shortage; up; fall
c) shortage; surplus; down; rise
d) surplus; shortage; down; rise

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Suppose that the bond market and the money market both start out in equilibrium, then the Federal Re...

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