If the Federal funds rate Multiple Choice increases, the prime interest rate will increase. increases, the...
If the Federal funds rate
Multiple Choice
increases, the prime interest rate will increase.
increases, the prime interest rate will decrease.
decreases, the prime interest rate will not change.
decreases, the prime interest rate will increase.
Homework Answers
Answer is Increases, The prime interest rate will increase.
Explanation:
When the Fed rate of interest increases, it will be a sign that the banker will also increase their prime lending rate at which they offer credit to their customers.
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If the Federal funds rate
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increases, the...
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