Fed Raises Federal Funds Rate (lower is just reverse)
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First
Fed raises federal funds rate
A few weeks - a few months (2)
Long-term real interest rates rise
Same day/ Next day
Other short term interest rates rise and the exchange rate rises
One year
Real GDP growth rate decrease
Up to a year (2)
aggregate demand decrease
Up to a year (1)
consumptions expenditure, investments, and net exports decrease
two years
inflation rate decreases
A few weeks - a few months (1)
quantity of money supplied and loanable funds decrease
