Question suppose that the federal funds rate rose from 3 to, Ask an Expert

Economics

Question: Suppose that the Federal funds rate rose from 3% to 6% during the year. What would you expect to happen to the rate of growth in real consumption, and in the consumption/income ratio, under the following circumstances?

(A) The corporate bond rate rose from 6% to 9%.

(B) The corporate bond rate remained unchanged at 6%.

(D) The stock market was unchanged.

(E) The unemployment rate rose from 5% to 6%.

(F) The unemployment rate was unchanged.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M93113913

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