When the Fed_{--------------------} the federal funds rate, the opportunity cost of firms' investment_{--------------------} and so the quantity of investment_{--------------------} . A)increases; rises; increases B)decreases; falls; decreases C)increases; falls; increases D)increases; rises; decreases E)decreases; rises; decreases

Question

Quizplus · Accepted Answer

When the Fed increases the federal funds rate, the opportunity cost of firms' investment rises, leading to a decrease in the quantity of investment.

When the Fed-------------------- the Federal Funds Rate, the Opportunity Cost

When the Fed_{--------------------} the Federal Funds Rate, the Opportunity Cost