If the Federal Reserve decreases the Federal funds rate, other short-term interest rates ________ and the exchange rate ________.

Question

Quizplus · Accepted Answer

When the Federal Reserve decreases the Federal funds rate, it typically leads to a decrease in other short-term interest rates as borrowing becomes cheaper. This often results in a depreciation of the currency, causing the exchange rate to fall.

If the Federal Reserve Decreases the Federal Funds Rate, Other