CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

If the Fed raises the discount rate, aggregate demand ______, real GDP growth ______, and the inflation rate ______.
Correct Answer: decreases; decreases, decreases

User Contributed Comments 2

User Comment
warnggg Why does inflation rate fall?
cfastudypl because when aggregate demand falls and real GDP growth decreases signalling contraction in the economy, inflation rate will fall. remember too that supply will be > than demand at this time.
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