Achieving the Goal of "Moderate Long-Term Interest Rates" Means That

question 163

Multiple Choice

Achieving the goal of "moderate long-term interest rates" means that the Fed needs to keep

• A) long-term nominal interest rates close to short-term nominal interest rates.
• B) long-term nominal interest rates close to short-term real interest rates.
• C) long-term nominal interest rates close to long-term real interest rates.
• D) long-term real interest rates close to short-term real interest rates.

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Definitions:

Comprehensive Income

The total change in equity for a reporting period, excluding any transactions from owners (such as dividends).

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.

Distributions

Payments made from a company or a fund to its shareholders, often from profits or reserves.

Risk

The exposure to the chance of loss or adverse outcomes in decision-making and financial investments, varying in likelihood and potential impact.