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Suppose that the Federal Reserve increases the federal funds rate by 1 percent. What would we expect ...
citycyborg
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Suppose that the Federal Reserve increases the federal funds rate by 1 percent. What would we expect ...
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
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3
rd
Authors:
Acemoglu, Laibson, List
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It would increase by less than 1 percent.
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citycyborg
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Smart ... Thanks!
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Thanks
rhockeygirl
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Helped a lot
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