Question: Suppose that the Federal funds rate rose from 3% to 6% during the year. What would you expect to happen to the rate of growth in real consumption, and in the consumption/income ratio, under the following circumstances?
(A) The corporate bond rate rose from 6% to 9%.
(B) The corporate bond rate remained unchanged at 6%.
(C) The stock market declined 20%.
(D) The stock market was unchanged.
(E) The unemployment rate rose from 5% to 6%.
(F) The unemployment rate was unchanged.