If the Federal Reserve Raises the Federal Funds Rate,which One

question 35

Multiple Choice

If the Federal Reserve raises the federal funds rate,which one of the following will tend to happen as a result?

• A) The inflation rate will increase.
• B) The demand curve for goods and services bought with a credit card will shift to the left.
• C) The demand curve for cars will shift to the right.
• D) Home mortgage rates will decline.

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Definitions:

Inheritance Interest

The stake or claim that an individual has in the property or estate of a deceased person.

Claim

A demand for something as due or owed, typically a request for money, property, or rights from a party believed to be liable.

Form Of Ownership

The legal structure that defines the ownership of a firm or asset, such as sole proprietorship, partnership, or corporation.

Inheritance Interest

A legal or equitable right to receive property or assets from the estate of a deceased person.