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Business, 05.08.2020 19:01 sanchitcoolcham4410

The Federal Reserve Board foresees the probability of an overheated economy and the resumption of double-digit inflation. Therefore, the FRB takes actions to slow down the economy, including increasing the discount rate. Which of the following are likely effects of these moves?i An increase in the prime rate. ii An increase in bond yields and an accompanying decrease in bond prices. iii A slowdown in corporate growth. iv A decrease in corporate earnings. A) III and IV. B) I, II, III and IV. C) I and II. D) I, III and IV.

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