In the Short Run, an Increase in the Federal Funds

question 71

Multiple Choice

In the short run, an increase in the federal funds rate ________ the real interest rate and ________ investment.

• A) lowers; increases
• B) raises; increases
• C) lowers; decreases
• D) raises; decreases

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Definitions:

7 to 14 Days

A general timeframe often associated with the incubation period of certain diseases, or the time required for particular biological processes to occur.

4 to 6 Weeks

A time frame often referred to in various contexts, indicating a period about one to one and a half months long.

1 Year

A period of 365 days (366 in a leap year), used as a standard unit of time to measure durations and ages.

Psychogenic Amnesia

A memory disorder characterized by sudden retrograde episodic memory loss, said to occur for a period of time ranging from hours to years due to psychological stress.