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Over the past year we have seen a great deal of inflation. The Fed has acted in a very hawkish
manner to fight inflation by increasing interest rates. Which of the following results have we
already seen and should expect to see more of in the future?
A.
A decrease in both bond and stock prices.
B.
A possible devaluation of the dollar.
C.
An decrease in the balance of payments deficit.
D.
A steeper upward sloped Yield Curve.

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  • 1. Over the past year we have seen a great deal of inflation. The Fed has acted in a very hawkish manner to fight inflation by increasing interest rates. Which of the following results have we already seen and should expect to see more of in the future? A. A decrease in both bond and stock prices. B. A possible devaluation of the dollar. C. An decrease in the balance of payments deficit. D. A steeper upward sloped Yield Curve.