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.
C
You might also like to view...
A situation in which one party makes a contractual agreement with a second party in the expectation that the second party will act on its behalf is known as
a. an adverse selection relation b. a signaling relation c. an authority relation d. a principal-agent relation e. a nonmarket relation
One major part of the opportunity costs of one's decision to go to college after high-school graduation is the:
A. Additional income that one can get if one had a college degree B. Education that one gets while in college C. High-school diploma needed in order to apply for college D. Full-time job that one could have gotten instead of going to college