The Effect of Monetary Policy on Long-Term Interest Rates Is

Multiple Choice

The effect of monetary policy on long-term interest rates is usually:

A) larger than its effect on short-term interest rates.
B) smaller than its effect on short-term interest rates.
C) immediate, as long-term rates are closely linked to the cash rate.
D) larger than its effect on short-term rates, but the effect occurs with a lag.