When the FOMC raises the federal funds rate, almost immediately ________, and a few weeks later the ________
A) short-term interest rates fall; quantity of money and supply of loanable funds decrease
B) long-term interest rates rise; quantity of money and supply of loanable funds increase
C) long-term interest rates rise; quantity of money and supply of loanable funds decrease
D) short-term interest rates rise; quantity of money and supply of loanable funds decrease
E) short-term interest rates fall; quantity of money and supply of loanable funds increase
D
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Average weekly hours in manufacturing is an example of a:
A) leading indicator. B) coincident indicator. C) lagging indicator. D) none of the above.
If output exceeds its full-employment level, the wage rate will eventually fall, causing a drop in the price level and a drop in real GDP until full employment is restored
a. True b. False