45. Suppose the Federal Reserve releases a policy statement today which leads people to believe that the Fed will be enacting contractionary monetary policy soon. Everything else held constant, the release of this statement would immediately cause the demand for U.S. financial assets to ______ and the U.S. dollar to _______. Select one: increase; appreciate decrease; appreciate increase; depreciate decrease; depreciate 44. If the government were to cut the personal income tax at the same time that it were to increase the corporate profits tax, the equilibrium price of bonds would ________, everything else held constant. Select one: decrease be ambiguous.
45. Suppose the Federal Reserve releases a policy statement today which leads people to believe that the Fed will be enacting contractionary monetary policy soon. Everything else held constant, the release of this statement would immediately cause the demand for U.S. financial assets to ______ and the U.S. dollar to _______. Select one: increase; appreciate decrease; appreciate increase; depreciate decrease; depreciate 44. If the government were to cut the personal income tax at the same time that it were to increase the corporate profits tax, the equilibrium price of bonds would ________, everything else held constant. Select one: decrease be ambiguous.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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45. Suppose the Federal Reserve releases a policy statement today which leads people to believe that the Fed will be enacting contractionary monetary policy soon. Everything else held constant, the release of this statement would immediately cause the demand for U.S. financial assets to ______ and the U.S. dollar to _______.
Select one:
increase; appreciate
decrease; appreciate
increase; depreciate
decrease; depreciate
44. If the government were to cut the personal income tax at the same time that it were to increase the corporate profits tax, the equilibrium price of bonds would ________, everything else held constant.
Select one:
decrease
be ambiguous.
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