Twenty-Four Months After a 1 Percentage Point Increase in the Short-Term

Multiple Choice

Twenty-four months after a 1 percentage point increase in the short-term (Treasury bill) interest rate,real GDP have fallen by about ________ in 1961-75,by ________ during 1976-1990,and by ________ during 1991-2007 period.88-2004.

A) 2%,1%,3%
B) 0.1%,2%,1.8%
C) 1.8%,0.9%,0.2%
D) 0.2%,0.1%,0.9%