What is the sequence of events from a rise in the federal funds rate target range to a change in the inflation rate? Other short-term interest rates _______. A. and the long-term interest rate rise the same day B. rise the same day, but it takes a few months for the supply of loanable funds to decrease C. rise within a few weeks, but the long-run interest rate rises almost immediately D. rise the same day, but it takes a few months for the supply of loanable funds to increase
What is the sequence of events from a rise in the federal funds rate target range to a change in the inflation rate? Other short-term interest rates _______. A. and the long-term interest rate rise the same day B. rise the same day, but it takes a few months for the supply of loanable funds to decrease C. rise within a few weeks, but the long-run interest rate rises almost immediately D. rise the same day, but it takes a few months for the supply of loanable funds to increase
Chapter26: Monetary Policy
Section: Chapter Questions
Problem 1P
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What is the sequence of events from a rise in the federal funds rate target range to a change in the inflation rate?
Other short-term interest rates _______.
A.
and the long-term interest rate rise the same day
B.
rise the same day, but it takes a few months for the supply of loanable funds to decrease
C.
rise within a few weeks, but the long-run interest rate rises almost immediately
D.
rise the same day, but it takes a few months for the supply of loanable funds to increase
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