A Rise in Short-Term Interest Rates That Is Believed to Be

Multiple Choice

A rise in short-term interest rates that is believed to be only temporary

A) is likely to have a significant effect on long-term interest rates.
B) will have a bigger impact on long-term interest rates than if the rise in short-term rates had been permanent.
C) is likely to have only a small impact on long-term interest rates.
D) cannot possibly affect long-term interest rates.