Which of the following is NOT an effect from a change in the federal funds rate?

A. change in aggregate demand
B. change in the real interest rate
C. change in investment
D. change in government expenditures
E. change in the quantity of money

Question

12-12-2022
Business

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Which of the following is NOT an effect from a change in the federal funds rate?

A. change in aggregate demand
B. change in the real interest rate
C. change in investment
D. change in government expenditures
E. change in the quantity of money

Respuesta :

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qwcricket qwcricket · Answer 1 · 2022-12-17T10:32:41+01:00

Change in government expenditure is not an effect of a change in the federal funds rate

The federal funds rate is the interest rate at which banks can lend or borrow overnight funds from each other. It is set by the Federal Reserve and is used as a tool to help achieve its monetary policy objectives. Whereas, a change in government expenditure refers to a change in the amount of money that the government spends on various programs and activities.

Government expenditure can include things like spending on defence, education, healthcare, and infrastructure, among other things. There is generally a relationship between the two, as changes in the federal funds rate can affect the overall level of economic activity and inflation, which can in turn affect the government's budget and spending decisions.

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Which of the following is NOT an effect from a change in the federal funds​ rate? A. change in aggregate demand B. change in the real interest rate C. change in investment D. change in government expenditures E. change in the quantity of money

Respuesta :

Otras preguntas

Which of the following is NOT an effect from a change in the federal funds rate?

A. change in aggregate demand
B. change in the real interest rate
C. change in investment
D. change in government expenditures
E. change in the quantity of money