Business, 26.07.2019 06:20 pinkmoonlight

The] federal open market committee raised its target on the federal-funds rate by 0.25 percentage point to 5.0%, hoping to cool demand in the robust economy and stave off any possible buildup in price many economists said a rate rise would be the economy generally still enjoys noninflationary growth driven by productivity gains. the economy expanded at a very strong annual 4.8% clip in the third quarter with few signs of inflationary pressures, in part because of the 4.2% jump in productivity. productivity gains allow businesses to hold the line on prices while paying higher wages. according to the passage, what was the federal-funds rate before the rate increase? a. 5.0% c. 4.8% b. 4.75% d. 5.25%

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