Multiple Choice
According to the AS/AD model, in the short run an increase in the federal funds rate will
A) decrease the price level and decrease real GDP.
B) increase the price level and decrease real GDP.
C) decrease the price level but leave real GDP unchanged.
D) decrease real GDP but leave the price level unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
Q177: In December, the Bank of England reduced
Q178: When the economy is in recession, does
Q179: In an AS/AD figure, lowering the federal
Q180: In the short run, the Fed's actions
Q181: A rise in the federal funds rate<br>A)
Q183: Long-term interest rates are _ than short-term
Q184: The less sensitive to the interest rate
Q185: At the end of 2013, the Fed
Q186: If the Fed is concerned with inflation
Q187: If the Fed lowers the federal funds