Interest Rates Set by the European Central Bank During the Period

Multiple Choice

Interest rates set by the European central bank during the period 1999-2004 resulted in what situation compared with the United States?

A) European rates were exactly the same as those in the United States, resulting in uncovered interest parity.
B) European rates were consistently higher than U.S. rates.
C) European rates were consistently lower than U.S. rates.
D) At first the European rates were much higher, but then the ECB acted aggressively to lower them.