If the Federal Reserve Bank has an expansionary monetary policy to help a U.S. economy that is in a deep recession and if you see most economic indicators like the Unemployment Rate, Leading Index of Economic Indicators, the Manufacturing Survey, Consumer Sentiment, and the NFIB Index for Small Business getting worse and worse, then what is happening to the prices of mortgage-backed securities (MBS) instruments? 

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In the scenario described where the US economy is in a deep recession and most economic indicators a... View the full answer