Macroeconomists Typically Assume That Most Market Interest Rates Move in Tandem

question 60

Multiple Choice

Macroeconomists typically assume that most market interest rates move in tandem with the central bank's official interest rate.While this assumption allows them to speak of "the" interest rate,it is a simplification of the fact that central banks generally have better control over _______ than over _______.

• A) short-term nominal interest rates;long-term nominal interest rates
• B) short-term real interest rates;short-term nominal interest rates
• C) long-term nominal interest rates;short-term nominal interest rates
• D) long-term mortgage rates;short-term mortgage rates
• E) the prime business rate;the overnight rate

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