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When the Federal Reserve increases the Federal funds rate,

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7 years ago

When the Federal Reserve increases the Federal funds rate,

When the Federal Reserve increases the Federal funds rate,
A) the supply of bank loans decreases, while the supply of loanable funds and the real interest rate both increase.
B) both the supply of bank loans and the supply of loanable funds increase, while the real interest rate increases.
C) both the supply of bank loans and the supply of loanable funds decrease, thereby increasing the real interest rate.
D) both the supply of bank loans and the supply of loanable funds increase, thereby decreasing the real interest rate.

Textbook

Foundations of Macroeconomics

Edition: 8^th

Authors: Bade, Parkin

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Studying economics @ Edinburgh U

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vellojo Author

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7 years ago

Checks out after I submitted my assignment Smiling Face with Open Mouth

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Studying economics @ Edinburgh U

ukrania

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7 years ago

Thanks

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