The Fed's large purchases of mortgage-backed securities have ________ their prices and ________ mortgage interest rates.
A) increased; raised
B) increased; lowered
C) decreased; raised
D) decreased; lowered
As of the end of 2016,Fannie Mae and Freddie Mac
A) were still under the control of the Federal Housing Finance Agency, and no definite plans for privatizing them were in place.
B) were still under the control of the Federal Housing Finance Agency, with Congress set to privatize them by the end of 2017.
C) had again become private.
D) were no longer in existence.
Mortgage interest rates are likely to ________ if the mortgage market becomes privatized,and they are likely to ________ if the Fed reduces its holdings of mortgage-backed securities over time.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
To permanently reduce the inflation rate,the Fed can cause a(n)________ in real GDP by ________ the real interest rate.
A) increase; raising
B) increase; lowering
C) decline; raising
D) decline; lowering