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

question 18

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.