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In September 2011,the Fed Announced a New Policy in Which

Question 133

Multiple Choice

In September 2011,the Fed announced a new policy in which it would invest in additional mortgage-backed securities in an attempt to further reduce mortgage rates and boost the housing market.Lower mortgage rates should lead to an increase in refinancing,which should ________ disposable income and therefore ________ aggregate demand.


A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

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