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When the Federal Reserve Increases the Federal Funds Rate,bank Loans

Question 32

Multiple Choice

When the Federal Reserve increases the federal funds rate,bank loans ________,the supply of loanable funds ________,and the real interest rate ________.


A) decrease;decreases;rises
B) do not change;decreases;rises
C) increase;increases;falls
D) increase;increases;rises
E) decrease;does not change;rises

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