The Fedʹs rates cuts will initially impact ________ and eventually ________.
A. bank reserves; government spending
B. the money supply; bank reserves
C. bank reserves; real GDP
D. investment; the real interest rate
Answer:C
The Fedʹs rates cuts will initially impact ________ and eventually ________.
A. bank reserves; government spending B. the money supply; bank reserves C. bank reserves; real GDP D. investment; the real interest rate