If the Federal Reserve decreases the Federal funds rate,other short-term interest rates ________ and the exchange rate ________.
A)fall;falls
B)do not change;rises
C)fall;does not change
D)fall;rises
E)do not change;falls

Question

Quizplus · Accepted Answer

When the Federal Reserve decreases the Federal funds rate, other short-term interest rates typically fall, and the exchange rate tends to fall as well due to decreased demand for the currency.

If the Federal Reserve Decreases the Federal Funds Rate,other Short-Term