According to Economists, Short-Term Interest Rates Apply to Loans and Savings

question 33

Multiple Choice

According to economists, short-term interest rates apply to loans and savings _____, and long-term interest rates apply to loans and savings:

• A) when product markets are not at equilibrium; when product markets are at equilibrium.
• B) when all market adjustments have occurred; when markets have not yet completed all adjustments.
• C) for less than one year; for more than one year.
• D) when credit markets are at equilibrium; when credit markets have not yet adjusted to equilibriums.

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