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 92 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
YES! Correct, THANKS for helping me on my review

phuda

  • Member
  • Posts: 348
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Changes in metabolic rate of selected structures in a mammal's body during different activities Changes in metabolic rate of selected structures in a mammal's body during different activities
Urinometer. In this procedure, a urine sample and urinometer are placed within a tube, and the liqui Urinometer. In this procedure, a urine sample and urinometer are placed within a tube, and the liqui
Top Ten States Ranked by Rate or Reported Bacterial STI Cases in 2011 Top Ten States Ranked by Rate or Reported Bacterial STI Cases in 2011
Changes in the Level of Education, 1975-2010 Changes in the Level of Education, 1975-2010
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
Concepts related to cancer affect the types of cancer Concepts related to cancer affect the types of cancer
Video: Bond in biological molecules (Ionic, Covalent and Hydrogen bonds)/ How atoms bond?

For a complete list of videos, visit our video library