A hike in the federal funds rate results in ________ in the real interest rate which leads to a ________ in investment.
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease
E) a decrease; no change
Correct Answer:
Verified
Q41: In the short run, to decrease the
Q42: If the Fed buys U.S.government securities from
Q43: If the Fed sells U.S.government securities,
A) the
Q44: Q45: If the Fed buys U.S.government securities, Q47: If the Fed carries out an open Q48: In an open market purchase, the Fed Q49: In order to lower the federal funds Q50: If the Fed carries out an open Q51: 
A) the
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