If There Are No Changes in Inflation Expectations,a Fall in the Federal

question 86

Multiple Choice

If there are no changes in inflation expectations,a fall in the federal funds rate ________.

• A) decreases the long-term nominal interest rate and increases the long-term expected interest rate
• B) increases the long-term nominal interest rate and decreases the long-term expected interest rate
• C) decreases both the long-term nominal interest rate and the long-term expected interest rate
• D) increases both the long-term nominal interest rate and the long-term expected interest rate

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Definitions:

Acts Happy

Exhibiting behaviors or expressions that suggest joy or contentment, regardless of one's actual emotional state.

Increased Feelings

A heightened state of emotions or affectivity, often implying more intense or stronger emotional responses.

Facial Feedback Effect

A psychological theory that suggests the expressions on our face can influence our emotions, implying the act of smiling can make us feel happier.

Holding A Pen

The act of gripping a pen with the fingers and hand in a manner suitable for writing.