The Effect of Monetary Policy on Long-Term Interest Rates Is

question 89

Multiple Choice

The effect of monetary policy on long-term interest rates is usually:

• A)larger than its effect on short-term interest rates.
• B)smaller than its effect on short-term interest rates.
• C)immediate, as long-term rates are closely linked to the cash rate.
• D)larger than its effect on short-term rates, but the effect occurs with a lag.

---

Definitions:

Patent

A legal right granted to an inventor that excludes others from making, using, selling, or importing the patented invention without permission.

2 Years

A common timeframe used in business planning and projections to evaluate performance and milestones.

Sole Proprietorship

A business structure where an individual owner operates the company and is personally responsible for its debts.

Personally Responsible

Taking ownership and accountability for one's actions and duties, being reliable in fulfilling obligations and commitments.