If there are no changes in inflation expectations, a fall in the federal funds rate:
A) increases both the long-run nominal interest rate and the long-run expected interest rate.
B) decreases the long-run nominal interest rate and increases the long-run expected interest rate.
C) decreases both the long-run nominal interest rate and the long-run expected interest rate.
D) increases the long-run nominal interest rate and decreases the long-run expected interest rate.
C
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Which of the following is part of M1?
I. currency in a bank's vault II. cash in your wallet III. checkable deposits IV. traveler's checks` A) I, II, III, and IV B) I, II, and III C) II and III D) II, III, and IV
If a 10 percent rise in price leads to a reduction in quantity demanded of more than 10 percent,
a. demand is elastic. b. demand is inelastic. c. elasticity of demand is unitary. d. None of the above is correct.
Which of the following is NOT counted as an economic resource?
a. Forests. b. Mental abilities of labor. c. Stocks and bonds. d. Entrepreneurship. e. All of the above are included.