Changes in the Federal Funds Rate Influence the Economy's Growth

question 13

Multiple Choice

Changes in the federal funds rate influence the economy's growth rate through all of the following except by:

• A) making it more or less attractive to people save.
• B) making it more or less expensive to borrow.
• C) making investment spending more or less attractive.
• D) altering the real interest rate when inflation is changing quickly.

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Definitions:

Remedy

A means of legal reparation, correction, or enforcement obtained through judicial process to address a wrong or enforce a right.

Wrongdoer

An individual or entity that has acted improperly, unlawfully, or maliciously.

Universal Law

A rule or body of rules that applies universally and is considered binding on all members of a group or category.

Legal Positivism

A theory in philosophy of law which holds that laws are rules established by human authorities and there's no inherent or necessary connection between law and morality.