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Question # 62

If the Federal Reserve lowers the federal funds rate, what is the most likely short-term effect?

Options:

A.

Increase in borrowing and investment

B.

Decrease in consumer spending

C.

Strengthening of the U.S. dollar against foreign currencies

D.

Reduction in the money supply

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FSOT Overview

Name Foreign Service Officer Test
Code FSOT
Vendor Public Service and Legal
Certification U.S. Department of State

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