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Loraine Loraine
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9 years ago
Suppose the Fed raises the federal funds rate. Put the following changes in order in which they occur, starting with the changes that take place almost immediately and ending with the changes that may occur up to two years afterwards:
i.   Short-term interest rates rise.
ii.    Long-term interest real interest rate rises.
iii.   Aggregate demand decreases.
iv.   Inflation rate decreases.
A) i-ii-iii-iv
B) ii-i-iii-iv
C) i-ii-iv-iii
D) i-iii-ii-iv
E) ii-i-iv-iii
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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Helped a lot
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You make an excellent tutor!
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