In the short run, a rise in the federal funds rate ________ the price level and ________ real GDP.
A. lowers; decreases
B. lowers; does not change
C. lowers; increases
D. does not change; increases
Answer:A
In the short run, a rise in the federal funds rate ________ the price level and ________ real GDP.
A. lowers; decreases B. lowers; does not change C. lowers; increases D. does not change; increases