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melisooflyy melisooflyy
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A year ago
Suppose that the Federal Reserve decreases the federal funds rate by 1 percent. What would we expect to happen to the long-term expected real interest rate?

▸ It would decrease by less than 1 percent.

▸ It would not change.

▸ It would increase by less than 1 percent.

▸ It would decrease by exactly 1 percent.
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
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chanelfargesenchanelfargesen
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A year ago
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