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If the Federal Reserve Lowers the Fed Funds Rate, Ceteris

Question 23

Multiple Choice

If the Federal Reserve lowers the Fed Funds rate, ceteris paribus, the equilibrium levels of funds lent will __________, and the equilibrium level of real interest rates will ___________.


A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Correct Answer:

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