One criticism of the Fed\'s quantitative easing policy is that a prolonged perio

Question

One criticism of the Fed's quantitative easing policy is that a prolonged period of low interest rates could lead to speculative bubbles. Some economists argued that as interest rates fell and prices of long-term Treasury bonds rose, financial markets were experiencing a "Treasury bubble." These economists worried that investors, banks, other financial firms, and pension funds were underestimating the likelihood that long-term interest rates would eventually ________, causing substantial ________ in the prices of Treasury bonds.

rise; declines

rise; increases

fall; declines

fall; increases

rise; declines

rise; increases

fall; declines

fall; increases

Explanation / Answer

Since this is positive, it would result in rise; increases

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