When the Federal Reserve increases the federal funds rate, bank loans ________, the supply of loanable funds ________, and the real interest rate ________. Group of answer choices A. decrease; decreases; rises B. do not change; decreases; rises C. increase; increases; falls D. increase; increases; rises E. decrease; does not change; rises

When the Federal Reserve increases the federal funds rate, bank loans , the supply of loanable funds , and the real interest rate . Group of answer choices A. decrease; decreases; rises B. do not change; decreases; rises C. increase; increases; falls D. increase; increases; rises E. decrease; does not change; rises

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter29: Interest, Rent, And Profit

Section: Chapter Questions

Problem 3QP

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Question

When the Federal Reserve increases the federal funds rate, bank loans ________, the supply of loanable funds ________, and the real interest rate ________.

Group of answer choices

A. decrease; decreases; rises

B. do not change; decreases; rises

C. increase; increases; falls

D. increase; increases; rises

E. decrease; does not change; rises

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