An Increase in the Federal Funds Rate Should: 

question 71

Multiple Choice

 An increase in the federal funds rate should: ?

• A) cause mortgage rates to increase by less than the increase in the federal funds rate.?
• B) have an inverse impact on mortgage rates.?
• C) not impact mortgage rates since the federal funds rate is a very short-term rate.?
• D) cause the mortgage rates to increase by more than the increase in the federal funds rate.

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