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

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
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Chapter26: Monetary Policy
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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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