- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 4. Monetary Policy
- Subject 2. Monetary Policy Tools and Monetary Transmission
CFA Practice Question
If the Fed raises the federal funds rate, aggregate demand ______, real GDP growth ______, and the inflation rate ______.
A. decreases, decreases, decreases
B. increases, increases, increases
C. increases, increases, decreases
Explanation: These are the ripple effects of a rise in the federal funds rate.
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