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Loraine Loraine
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9 years ago
When the Fed raises the federal funds rate,
A) the real interest rate is unchanged so investment and consumption expenditure are not changed.
B) the real interest rate increases, thereby decreasing investment and consumption expenditure.
C) the real interest rate falls, thereby increasing investment and consumption expenditure.
D) investment and consumption expenditure increase, thereby raising the real interest rate.
E) the real interest rate increases, thereby decreasing investment and increasing consumption expenditure.
Textbook 
Essential Foundations of Economics

Essential Foundations of Economics


Edition: 7th
Authors:
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Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.
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SydnieSydnie
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9 years ago
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Loraine Author
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9 years ago
this is exactly what I needed
taydav
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Yesterday
Just got PERFECT on my quiz
bioc
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2 hours ago
Thank you, thank you, thank you!
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