Multiple Choice
A decrease in the federal funds rate
A) increases other short-term interest rates, decreases investment, and decreases aggregate demand.
B) lowers the exchange rate, increases the supply of loanable funds, and increases aggregate demand.
C) lowers other sort-term interest rate, raises the real interest rate, and increases aggregate demand.
D) decreases the demand for loanable funds, lowers the real interest rate, and decreases aggregate demand.
Correct Answer:
Verified
Correct Answer:
Verified
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