The FOMC is concerned about inflation and has ________ the federal funds rate. Due to substitution effects, other ________ interest rates will ________ almost immediately

A) increased; short-term; increase
B) decreased; short-term; decrease
C) increased; long-term; increase
D) decreased; long-term; decrease
E) increased; short-term; decrease


A

Economics

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The price of a stock will increase, ceteris paribus, when

A. The supply of the stock increases. B. Future earnings expectations increase. C. The interest rate increases. D. There is a surplus of the stock at the current price.

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Opportunity cost is a theoretical concept with no practical application.

Answer the following statement true (T) or false (F)

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Empirical evidence indicates that higher real interest rates lead to ________ in savings.

A. modest decreases B. no change in C. substantial increases D. modest increases

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