Which of the following would be most likely to lead to increases in nominal

Which of the following would be most likely to lead

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9.Which of the following would be most likely to lead to increases in nominal interest rates? a.A new technology such as the Internet has just been introduced, and it increases investment opportunities.b.The Federal Reserve decides to try to stimulate the economy by increasing investment opportunities.c.The economy falls into a recession.d.There is a decrease in expected inflation.e.Households reduce their consumption and increase their savings. 10. A predictable correlation between the demand curve for funds and the supply curve is this: If the demand curve for funds increases but the supply curve remains constant, then the total amount of funds supplied and demanded increase and interest rates in general also increase.
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11. If the U.S. Treasury were to issue $50 billion of short-term securities and sell them to the public, what would be the most likely effect of short-term securities’ prices and interest rates? Assume that other factors are held constant. 12. Of the many factors that affect the cost of money, one of the four most fundamental factors is the availability of production opportunities and their expected rates of return. A predictable correlation between production opportunities and interest rates is this: If opportunities are relatively good, then interest rates will tend to be relatively high, other things held constant. 13. Suppose the Fed takes actions that lower expectations for inflation this year by 1 percentage point, but these same actions raise expectations for inflation in Years 2 and thereafter by 2 percentage point. Other things held constant; the yield curve becomes steeper. a.Trueb.False 14. Imagine that you see a yield curve for a current corporate bond that is upward sloping. What can you determine from this information?
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