Changes in the federal funds rate usually result in
A) changes in both short-term and long-term interest rates with more of an effect on short-term interest rates.
B) changes in both short-term and long-term interest rates with equal effect on both.
C) changes in both short-term and long-term interest rates with more of an effect on long-term interest rates.
D) no change in either short-term or long-term interest rates.
A
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Is the statement correct or incorrect?
The appropriate fiscal policy stance depends, at least partly, on the
A. stance of trade policy. B. stance of monetary policy. C. party in power in Congress. D. party in power in the presidency.