A rise in the federal funds rate
A) lowers the long- term real interest rate.
B) may raise or lower the long- term real interest rate, depending on whether the demand for loanable funds curve has a negative or a positive slope.
C) does not change the long- term real interest rate.
D) raises the long- term real interest rate.
Correct Answer:
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Q185: Q186: Which of the following is a problem Q187: The monetary policy rule that is in Q188: Businesses become convinced that future profits from Q189: The Fed's actions to fight an inflation Q191: In the short run, a rise in Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
