This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: How does a rise in the federal funds rate affect aggregate demand, real GDP, and the price level? ... (Read 47 times)

gonzo233

  • Hero Member
  • *****
  • Posts: 557
on: Jun 29, 2018
How does a rise in the federal funds rate affect aggregate demand, real GDP, and the price level?
 
  What will be an ideal response?

Question 2

The tendency for the values of two variables to move in a predictable and related way is known as
 
  A) a natural experiment.
  B) a normative relationshi


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

potomatos

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 29, 2018
Answer to Question 1

A rise in the federal funds leads to investment, consumption expenditure, and net exports all decreasing, which, in turn, decreases aggregate demand. The decrease in aggregate demand then decreases real GDP and lowers the price level.

Answer to Question 2

D


gonzo233

  • Member
  • Posts: 557
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

  • Member
  • Posts:
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Three routes of tissue-level transport in plants: transmembrane, symplastic, and apoplastic. Three routes of tissue-level transport in plants: transmembrane, symplastic, and apoplastic.
The Real Reason Why They Repeat the Same 20 Songs on the Radio & TV Nationwide The Real Reason Why They Repeat the Same 20 Songs on the Radio & TV Nationwide
Normal development of posture and spinal curves. (A) Toddler: Protruding abdomen; lumbar lordosis. ( Normal development of posture and spinal curves. (A) Toddler: Protruding abdomen; lumbar lordosis. (
China has relied on cheap coal to meet its demand for energy China has relied on cheap coal to meet its demand for energy
Prove that each of the following real functions f has a discontinuity. For each function, ... Prove that each of the following real functions f has a discontinuity. For each function, ...
Soybean plants in nitrogen-poor soil show how root nodules affect growth. Only the darker green plan Soybean plants in nitrogen-poor soil show how root nodules affect growth. Only the darker green plan
Video: Krebs cycle : Formation of acetyl coenzyme A and Electron transport chain

For a complete list of videos, visit our video library