The Fed Can Influence Long-Term Interest Rates by

question 130

Multiple Choice

The Fed can influence long-term interest rates by

• A) influencing the current one-year rate.
• B) affecting people's expectations of future short-term rates.
• C) influencing the demand for money in the short run.
• D) Both A and B are correct.

---

Definitions:

Volley Principle

A theory explaining how auditory neurons can produce the perception of sound frequencies higher than their individual firing rates through coordinated action.

Low Frequencies

Refers to sound waves with a frequency below about 200 Hz, often associated with bass sounds in music and acoustics.

Optic Disc

The optic disc is the point on the retina where the optic nerve fibers exit the eye, often referred to as the blind spot since it lacks photoreceptor cells.

Somatosensory Senses

The body's sensations, including touch, temperature, pain, and proprioception, allowing us to perceive our environment and body position.