Question

Every one percent increase in the rate of inflation will:
A. increase the real federal funds rate by 1.5%.
B. increase the target federal funds rate by 1.5%.
C. increase the real federal funds rate by 0.5%.
D. increase the target federal funds rate by 1.5% and increase the real federal funds rate by 0.5%.

Answer

This answer is hidden. It contains 2 characters.