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citycyborg citycyborg
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2 months ago
Suppose that the Federal Reserve increases 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 decrease by exactly 1 percent.

▸ It would increase by less than 1 percent.

▸ It would not change.
Textbook 

Macroeconomics


Edition: 3rd
Authors:
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live4outdoorslive4outdoors
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2 months ago
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It would increase by less than 1 percent.

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