If the Federal Reserve lowers the Federal funds rate,
A. other short-term interest rates fall.
B. other short-term interest rates rise.
C. the exchange rate falls.
D. Both answers A and C are correct.
Answer:D
If the Federal Reserve lowers the Federal funds rate,
A. other short-term interest rates fall. B. other short-term interest rates rise. C. the exchange rate falls. D. Both answers A and C are correct.