Because prices are sticky in the short-run,when the Federal Reserve raises the federal funds rate
A) nominal interest rates fall.
B) real interest rates rise.
C) inflation falls.
D) real interest rates fall.
Correct Answer:
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Q1: Based on the Taylor Principle,a central bank's
Q3: In deriving the aggregate demand curve a
Q4: Everything else held constant,an increase in government
Q5: Inflationary pressures caused the FOMC to increase
Q6: Based on the Taylor Principle,a central bank's
Q7: Everything else held constant,an autonomous tightening of
Q8: The upward slope of the MP curve
Q9: Because prices are slow to move in
Q10: The aggregate demand curve is downward sloping
Q11: An autonomous tightening of monetary policy
A)causes an
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