The Fed Raises the Federal Funds Rate

question 67

Multiple Choice

The Fed raises the federal funds rate.Which of the following changes occurs most rapidly?

• A)Exchange rate rises.
• B)Consumption expenditure decreases.
• C)Aggregate demand decreases.
• D)Real GDP growth decreases.
• E)Inflation rate decreases.

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Definitions:

Consent Restraints

Legal restrictions or limitations that individuals agree to voluntarily, often within the context of contracts or agreements to restrict certain actions.

Provisions Disqualifying Purchasers

Legal clauses or regulations that prevent certain individuals or entities from buying or acquiring specific assets or securities due to regulatory concerns or conflicts of interest.

Manifestly Unreasonable

A term describing actions or decisions that are so unfair or absurd that they are immediately recognizable as unjust.

Consent Restraint

A security transfer restriction requiring a shareholder to obtain the consent of the corporation or its shareholders prior to the shareholder’s sale of her shares.