If there are no changes in inflation expectations,a fall in the federal funds rate ________.
A) decreases the long-term nominal interest rate and increases the long-term expected interest rate
B) increases the long-term nominal interest rate and decreases the long-term expected interest rate
C) decreases both the long-term nominal interest rate and the long-term expected interest rate
D) increases both the long-term nominal interest rate and the long-term expected interest rate
Correct Answer:
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Q190: Suppose that the Federal Reserve decreases the
Q191: The federal funds rate is a _.
A)
Q192: If the nominal interest rate in an
Q193: If the nominal interest rate in an
Q194: Suppose that the Federal Reserve increases the
Q196: If the expected real interest rate in
Q197: Rising inflation is a pressing concern of
Q198: Which of the following equations is correct?
A)
Q199: Which is the Federal Reserve more concerned
Q200: Suppose the interest rate that banks in
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