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Loraine Loraine
wrote...
Posts: 4563
9 years ago
When the Fed increases the federal funds rate,
A) there is no effect on investment because investment depends on the real interest rate.
B) the real interest rate falls, and investment increases.
C) the real interest rate rises, and investment decreases.
D) the real interest rate is unaffected, but investment still decreases.
E) the real interest rate rises, and investment does not change.
Textbook 
Essential Foundations of Economics

Essential Foundations of Economics


Edition: 7th
Authors:
Read 192 times
1 Reply
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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Posts: 3807
9 years ago
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Loraine Author
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9 years ago
You make an excellent tutor!
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Yesterday
this is exactly what I needed
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2 hours ago
Thanks
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