Which One of the Following Statements About Interest Rates Is

question 35

Multiple Choice

Which one of the following statements about interest rates is incorrect?

• A) Bond prices and interest rates change inversely with one another.
• B) The expected rate of inflation affects current market interest rates.
• C) Short-term interest rates are not as volatile as long-term interest rates.
• D) Interest rates are directly related to the level of output in the economy.

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