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16. The Central Bank is buying government bonds in the marketplace. At the same time the...

16. The Central Bank is buying government bonds in the marketplace. At the same time the government is increasing spending in an effort to raise consumption in the short-term. What is the most likely effect on interest rates and the stock market in the short-run under this scenario?

  Interest Rates Stock Market
a. lower lower
b. higher lower
c. lower higher
d. higher higher

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