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:

Tranquilizers

Medications that induce a state of relaxation and calmness.

Sleep Apnea

A sleep disorder characterized by pauses in breathing or periods of shallow breathing during sleep, which can lead to disrupted sleep and other health issues.

Hypnotic Responsiveness

An individual's ability to respond to hypnotic suggestions and enter a state of hypnosis.

Hypnotized

The state of being under hypnosis, characterized by heightened focus, concentration, and suggestibility, often used for therapeutic purposes.