Which of the Following Is True

question 32

Multiple Choice

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.

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Definitions:

Stimulus Dimension

A specific aspect of a stimulus, such as color or shape, which can be detected and processed by the sensory system.

Preoperational Stage

A stage in Piaget’s theory of cognitive development, typically occurring from ages 2 to 7, characterized by the development of language and symbolic thinking but not yet logical reasoning.

Animistically

Characterized by the belief that non-human entities, like animals, plants, and inanimate objects, possess a spiritual essence or soul.

Conservation

The act of preserving, protecting, or restoring natural resources, historical artifacts, or cultural heritage from loss, damage, or decay.