In the short run, when the Fed raises the federal funds rate,
A) the real interest rate is unchanged so investment and consumption expenditure are not changed.
B) the real interest rate temporarily falls, thereby increasing investment and consumption expenditure.
C) the real interest rate temporarily increases, thereby decreasing investment and increasing consumption expenditure.
D) the real interest rate temporarily increases, thereby decreasing investment and consumption expenditure.
E) investment and consumption expenditure increase, thereby raising the real interest rate temporarily.
D
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The first important law regulating monopolies in the United States was
A) the Clayton Act, which was passed in 1890. B) the Sherman Act, which was passed in 1890. C) the Grant Act, which was passed in 1890. D) the Federal Trade Commission Act, which was passed in 1914.
The Federal Reserve's most important function is to change the money supply in order to smooth out the business cycle
a. True b. False Indicate whether the statement is true or false