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ASHA 777 [7]
2 years ago
11

If every one-point change in the federal funds rate alters aggregate demand by $200 billion, how far did AD shift in response to

the interest rate cuts?
Physics
1 answer:
attashe74 [19]2 years ago
7 0

If every one-point change in the federal funds rate alters aggregate demand by $200 billion, the AD shifted to the right by a billion. This is further explained below.

<h3>What is the interest rate?</h3>

Generally, the interest rate is simply defined as the part of a loan levied to the borrower as interest, usually represented as a yearly percentage of the loan outstanding

In conclusion, If a one-point increase in the federal funds rate changes aggregates demand by $200 billion, the AD shifts to the right by a billion.

Read more about interest rate

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