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If there are no changes in inflation expectations, a fall in the federal funds rate ________.
alphalions
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If there are no changes in inflation expectations, a fall in the federal funds rate ________.
If there are no changes in inflation expectations, a fall in the federal funds rate ________.
▸ decreases both the long-term nominal interest rate and the long-term expected interest rate
▸ decreases the long-term nominal interest rate and increases the long-term expected interest rate
▸ increases the long-term nominal interest rate and decreases the long-term expected interest rate
▸ increases both the long-term nominal interest rate and the long-term expected interest rate
Textbook
Macroeconomics
Edition:
3
rd
Authors:
Acemoglu, Laibson, List
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decreases both the long-term nominal interest rate and the long-term expected interest rate
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alphalions
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Helped a lot
Tabitha.davis
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Thanks
bkrandy
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Good timing,
thanks!
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