Multiple Choice
If the Federal Reserve lowers the discount 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
E) reverse direction from their previous trends; reverse direction from their previous trends
Correct Answer:
Verified
Correct Answer:
Verified
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