In an Effort to Maintain Price Stability,it Is Expected That

question 91

Multiple Choice

In an effort to maintain price stability,it is expected that the European Central Bank will raise interest rates in the future.Which of the following is the most likely effect of such an action on short- and long-term interest rates in Europe?

• A)Long-term interest rates will tend to be higher than short-term interest rates.
• B)Long-term interest rates will be about the same as short-term interest rates.
• C)Both long- and short-term interest rates would be expected to fall sharply.
• D)No relative change in short and long term interest rates could be predicted.

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Definitions:

Freudian Psychology

A comprehensive theory of human nature that emphasizes the importance of the unconscious mind, developed by Sigmund Freud.

Positive Psychology

A field of psychology focused on the study of positive aspects of human life, such as happiness, well-being, and thriving.

William James

An American philosopher and psychologist, often referred to as the father of American psychology.

Wilhelm Wundt

Often regarded as the father of psychology, he established the first psychology laboratory at the University of Leipzig, Germany.