In General,if the Bank of Canada Increases Its Target for the Overnight

Multiple Choice

In general,if the Bank of Canada increases its target for the overnight rate,

A) short-term nominal interest rates will increase and long-term nominal interest rates will not change.
B) short-term nominal interest rates will not change and long-term nominal interest rates increase.
C) short-term nominal interest rates will increase and long-term nominal interest rates will also increase.
D) short-term nominal interest rates will not change and long-term nominal interest rates will also not change.