The Standard Discussion of Monetary Policy Is Based on the Assumption

Multiple Choice

The standard discussion of monetary policy is based on the assumption that:

A) long-term rates will fall when the Fed pushes up short-term interest rates.
B) long-term rates will rise when the Fed pushes up short-term interest rates.
C) short-term rates will fall when the Fed pushes up long-term interest rates.
D) short-term rates will rise when the Fed pushes up long-term interest rates.