In the short run, a rise in the federal funds rate the price level and _ real GDP.

Name: In the short run, a rise in the federal funds rate the price level and _ real GDP.
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

In the short run, a rise in the federal funds rate typically lowers the price level by reducing inflationary pressures and decreases real GDP by making borrowing more expensive, which can reduce investment and consumption.

In the Short Run, a Rise in the Federal Funds