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Suppose that the Fed suddenly sells $100 billion worth of long-term bonds that it purchased during...

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Economics

Suppose that the Fed suddenly sells $100 billion worth of long-term bonds that it purchased during its quantitative easing phase. (Specifically, they sell 5, 10 and 20 year bonds). How will this affect the interest rates on other long-term bonds? Question 4 options: a. Interest rates will rise b. Interest rates will fall c. Interest rates will not be affected

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