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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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nilabmirzada

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alphalions Author

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Just got PERFECT on my quiz

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You make an excellent tutor!

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