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Which of the following is NOT an effect from a change in the federal funds? rate? A
Which of the following is NOT an effect from a change in the federal funds? rate?
A.
change in aggregate demand
B.
change in the real interest rate
C.
change in investment
D.
change in government expenditures
E.
change in the quantity of money
Expert Solution
Answer
Option D
Change in government expenditure
It does not depend on the interest rate in the market.
This is component of fiscal policy and that depends on the policy makers
?
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