Solved

Long-Term Interest Rates May Not Closely Follow Short-Term Interest Rates

Question 31

Multiple Choice

Long-term interest rates may not closely follow short-term interest rates if


A) People prefer to hold transactions accounts over cash.
B) The required reserve ratio decreases.
C) Lenders are reluctant to make loans.
D) The Fed intervenes in the bond market.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions