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AP Macroeconomics
Unit 4 – Financial Sector
Topic 4.6
What's the effect of a decrease in the federal funds rate on the money supply?
It increases the money supply
It stabilizes the money supply
It decreases the money supply
It makes the money supply negative
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AP Macroeconomics - 4.6 Monetary Policy
Key terms
Federal funds rate
Money Supply
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About Fiveable
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CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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