The Effect of Monetary Policy on Long-Term Interest Rates Is

question 89

Multiple Choice

The effect of monetary policy on long-term interest rates is usually:

• A)larger than its effect on short-term interest rates.
• B)smaller than its effect on short-term interest rates.
• C)immediate, as long-term rates are closely linked to the cash rate.
• D)larger than its effect on short-term rates, but the effect occurs with a lag.

---

Definitions:

Vitamins

Essential organic substances necessary for healthy growth and nutrition, which must be included in the diet in small amounts due to the body's inability to produce them.

Minerals

Inorganic elements that are essential for the body to function properly, such as calcium, iron, and potassium.

Fatty Acid Molecules

Organic compounds largely made of long hydrocarbon chains that are important components of lipids in the body.

Glycerol Molecule

A simple compound forming the backbone of most lipids, used by the body in various metabolic processes.