On the level and slope of the yield curve

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Reference no: EM132069350

Suppose a new Congress and administration overrule the independence of the Federal Reserve System and force the Fed to greatly expand the money supply. What effect will this have?

A. On the level and slope of the yield curve immediately after the announcement?

B. On the level and slope of the yield curve that would exist two to three years in the future?

Reference no: EM132069350

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