Empirical Evidence Suggests That Over the Last Ten Years

question 10

Multiple Choice

Empirical evidence suggests that over the last ten years:

• A)the nominal and real federal funds rates are related inversely.
• B)the nominal and real federal funds rates are highly positively correlated.
• C)while the FOMC has had a lot of influence over the nominal federal funds rate, they have been less successful at changing the real federal funds rate.
• D)there is no correlation between the nominal and real federal funds.

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Definitions:

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