Because Prices Are Slow to Move in the Short-Run,when the Federal

question 15

Multiple Choice

Because prices are slow to move in the short-run,when the Federal Reserve lowers the federal funds rate

• A)nominal interest rates rise.
• B)real interest rates fall.
• C)inflation falls.
• D)real interest rates rise.

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Definitions:

Injustice

A situation or action that is perceived as unfair, unequal, or undeserving.

Preexisting Duty Rule

In contract law, a principle that states if someone is already legally required to perform a certain duty, promising to perform that duty is not sufficient consideration for a new contract.

Consideration

The value (such as money, services, or goods) promised in a contract that motivates parties to enter into the agreement.

Ethical

Related to moral principles or the branch of knowledge dealing with these.