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.
Correct Answer:

Verified
Correct Answer:
Verified
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