The Interest Rate Thought to Have the Most Important Impact

question 10

Multiple Choice

The interest rate thought to have the most important impact on aggregate demand is the

• A)short-term interest rate.
• B)T-bill rate.
• C)rate on 90-day CDs.
• D)long-term interest rate.

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Definitions:

Inflationary

Related to or indicative of the increase in prices of goods and services over time, leading to a decrease in the purchasing power of money.

Self-Sufficient

Capable of fulfilling all necessary needs without relying on external resources or assistance.

Tariff

A tax imposed by a government on goods and services imported from other countries to raise state revenue or protect domestic industries.

Imported Steel

Steel that is produced in one country and then brought into another country for use in manufacturing or construction.