Which of the following is true?
a. Monetary policy influences long-term real interest rates more than short-term interest rates.
b. Short-term interest rates are primarily determined by real factors and the expected inflation.
c. A shift to a more expansionary monetary policy will tend to raise short-term interest rates.
d. A shift to expansionary monetary policy that increases the fear of future inflation will tend to increase long-term interest rates.
D
You might also like to view...
Costs of renewing contracts or printing new price lists are known as
A) small business costs. B) small menu costs. C) small operating costs. D) small production costs.
Exhibit 9-1 GDP and consumption data GDP Consumption Aggregate Expenditures Unplanned inventory $0 $0.5 1 1.0 2 1.5 3 2.0 4 2.5 5 3.0 6 3.5 7 4.0 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investment, government spending, and net exports is:
A. $1 trillion. B. $2 trillion. C. $3 trillion. D. $4 trillion.