Each of these events occurred as a result of falling real estate prices in 2006 and 2007 EXCEPT that: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices the Federal Funds rate began to rise. the growth rate of the money supply fell. aggregate demand fell. new home construction dropped very quickly.

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27-06-2022
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Each of these events occurred as a result of falling real estate prices in 2006 and 2007 EXCEPT that: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices the Federal Funds rate began to rise. the growth rate of the money supply fell. aggregate demand fell. new home construction dropped very quickly.

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Tundexi Tundexi · Answer 1 · 2022-06-29T15:25:29+02:00

The exception to the result of falling real estate prices in 2006 and 2007 includes the Federal Funds rate began to rise.

What is the federal funds rate?

This refers to the interest rate which the banks charges other while borrowing or lending their excess reserves.

Now, this Federal Funds rate is independently determined by the Federal reserve not by events in the broader economy such as the falling real estate prices.

Therefore, the Option A is correct.