People who have bought a house using an adjustable-rate mortgage are most likely to be hurt by
A) an increase in the inflation rate.
B) an increase in the amount of the Fed's discount lending.
C) a decrease in the reserve requirement.
D) an increase in the federal funds rate.

Question

Quizplus · Accepted Answer

Adjustable-rate mortgage rates will tend to rise as the Fed increases the federal funds rate, which affects other interest rates in the same direction.

People Who Have Bought a House Using an Adjustable-Rate Mortgage