In an Effort to Maintain Price Stability, It Is Expected

question 44

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-term 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:

Procurement Software

Software applications designed to automate purchasing processes, manage vendor relationships, and streamline the acquisition of goods and services.

Sales Increase

An upward movement in the quantity or revenue of products or services sold, indicating improved business performance or market demand.

ERP Systems

Enterprise Resource Planning systems integratemany business management and operation processes and facilitate the flow of information within an organization.

SCIS Systems

Integrated technology platforms that support the management of the supply chain, focusing on improving efficiency and communication between participants.