CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

When the Federal Reserve lowers the federal funds rate, aggregate demand ______ and the growth rate of real GDP ______.
A. decreases; increases
B. increases; increases
C. increases; decreases
Explanation: A change in the federal funds rate will change three components of aggregate expenditure: consumption, investment, and net exports.

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