The short-run effect of lowering the federal funds rate
A. raises the price level and increases real GDP.
B. raises the price level and decreases real GDP.
C. lowers the price level and increases real GDP.
D. lowers the price level and decreases real GDP.
Answer:A
The short-run effect of lowering the federal funds rate
A. raises the price level and increases real GDP. B. raises the price level and decreases real GDP. C. lowers the price level and increases real GDP. D. lowers the price level and decreases real GDP.