Changes in the Overnight Interest Rate Usually Result in

question 86

Multiple Choice

Changes in the overnight interest rate usually result in

• A)changes in both short-term and long-term interest rates with more of an effect on short-term interest rates.
• B)changes in both short-term and long-term interest rates with more of an effect on long-term interest rates.
• C)changes in both short-term and long-term interest rates with equal effect on both.
• D)no change in both short-term and long-term interest rates.
• E)changes in the short-term real interest rate but not the short-term nominal interest rate.

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Definitions:

Endoderm

The innermost layer of cells or tissue of an embryo in early development, giving rise to the digestive and respiratory systems.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the formation of the nervous system and skin.

Epithelial Tissue

A type of tissue that lines the cavities and surfaces of blood vessels and organs throughout the body, providing protection, absorption, and secretion.

Connective Tissue

Connective tissue supports, binds together, and protects tissues and organs of the body with various types including loose, dense, cartilage, bone, and blood.