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:

Trigeminal

refers to the fifth cranial nerve responsible for sensation in the face and motor functions such as biting and chewing.

Optic

Relating to the eye or vision; often used in terms associated with the visual pathways and structures.

Sympathetic Division

The sympathetic division is a part of the autonomic nervous system that prepares the body for physical activity, increasing heart rate, blood pressure, and energy availability.

Heart Contractions

The rhythmic contractions of the cardiac muscle of the heart that pump blood throughout the body.