In the Sticky-Price Model, the Interest Rate Is Set

Multiple Choice

In the sticky-price model, the interest rate is set

A) directly by businesses or indirectly by the combination of the stock of money and the liquidity preference of households and the central bank.
B) directly by the central bank or indirectly by the combination of the stock of money and the liquidity preference of households and businesses.
C) directly by households or indirectly by the combination of the stock of money and the liquidity preference of businesses and the central bank.
D) directly by Congress or indirectly by the combination of the stock of money and the liquidity preference of households and businesses.