Preference

Question: Which of the following will be likely to result from an open market purchase of securities by the central bank?

  1. a.
    a fall in short-term capital inflows
  2. b.
    a fall in the quantity of money
  3. c.
    a rise in the level of unemployment
  4. d.
    a rise in the rate of interest
  5. e.
    None of these
Answer: a
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