The Short-Term Impacts of a Decrease in the Cash Rate

question 38

Multiple Choice

The short-term impacts of a decrease in the cash rate are

• A)other short-term interest rates increase and the exchange rate falls.
• B)other short-term interest rates increase and the quantity of money and loanable funds increases.
• C)other short-term interest rates decrease and the exchange rate falls.
• D)other short-term interest rates decrease and the quantity of money and loanable funds falls.
• E)other short-term interest rates increase and the quantity of money and loanable funds falls.