When the Flow of Money Is Tight, the Price of Short-Term

question 70

Multiple Choice

When the flow of money is tight, the price of short-term loans will be bid ________ and the federal fund rate (FFR) will ________.

• A) up; rise
• B) down; rise
• C) up; fall
• D) down; fall
• E) up in good economic times and down in difficult economic times; vary depending on market forces

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