Which of the following is NOT a short-run effect of a decrease in the federal funds rate?
A. Aggregate demand increases.
B. Net exports increase.
C. Aggregate supply increases.
D. Inflation rate increases.
Answer:C
Which of the following is NOT a short-run effect of a decrease in the federal funds rate?
A. Aggregate demand increases. B. Net exports increase. C. Aggregate supply increases. D. Inflation rate increases.