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Suppose that the Federal Reserve decreases the federal funds rate by 1 percent. What would we expect ...
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Suppose that the Federal Reserve decreases the federal funds rate by 1 percent. What would we expect ...
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
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3
rd
Authors:
Acemoglu, Laibson, List
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It would decrease by less than 1 percent.
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melisooflyy
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This helped my grade so much
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Brilliant
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I appreciate what you did here, answered it right
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