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Which of the Following Is True

Question 32

Multiple Choice

Which of the following is true?


A) Monetary policy influences long-term real interest rates more than short-term interest rates.
B) Short-term interest rates are primarily determined by real factors and the expected inflation.
C) A shift to a more expansionary monetary policy will tend to raise short-term interest rates.
D) A shift to expansionary monetary policy that increases the fear of future inflation will tend to increase long-term interest rates.

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