Author Question: In the short run, when the Fed raises the federal funds rate, A) the real interest rate is ... (Read 92 times)

cookcarl

  • Hero Member
  • *****
  • Posts: 539
In the short run, when the Fed raises the federal funds rate,
 
  A) the real interest rate is unchanged so investment and consumption expenditure are not changed.
  B) the real interest rate temporarily falls, thereby increasing investment and consumption expenditure.
  C) the real interest rate temporarily increases, thereby decreasing investment and increasing consumption expenditure.
  D) the real interest rate temporarily increases, thereby decreasing investment and consumption expenditure.
  E) investment and consumption expenditure increase, thereby raising the real interest rate temporarily.

Question 2

Of the following countries, which is the best example of a command economy?
 
  A) the United States
  B) Cuba
  C) Japan
  D) Brazil


sarah_brady415

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

D

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

Your heart beats over 36 million times a year.

For a complete list of videos, visit our video library