Answered: The Fed increases the discount rate. As…

The Fed increases the discount rate. As a result, ceteris paribus, the equilibrium interest rate will: a) not change b) decrease c) be ambiguous d) increase

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 14QP

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Question

The Fed increases the discount rate. As a result, ceteris paribus, the equilibrium interest rate will:

a) not change

b) decrease

c) be ambiguous

d) increase

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