Multiple Choice
Suppose that the Federal Reserve decreases the federal funds rate by 1 percent.What would we expect to happen to the long-term expected real interest rate?
A) It would increase by less than 1 percent.
B) It would not change.
C) It would decrease by less than 1 percent.
D) It would decrease by exactly 1 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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