The Fed Can Influence Long-Term Interest Rates by

question 21

Multiple Choice

The Fed can influence long-term interest rates by

• A) influencing the current one-year rate.
• B) affecting people's expectations of future short-term rates.
• C) influencing the demand for money in the short run.
• D) both A and B are correct

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Definitions:

Deviance

Occurs when someone departs from a norm and evokes a negative reaction from others.

Norm-breaking

Refers to actions or behaviors that deviate from widely accepted social norms or standards.

Sanctions

Measures taken by countries or international bodies to restrict trade, financial transactions, or other economic relations to enforce policies or punish.

Informal Punishment

Involves a mild sanction that is imposed during face-to-face interaction, not by the judicial system.