in an effort to maintain price stability, it is expected that the European Centr
ID: 2683228 • Letter: I
Question
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) no relative change in short and long term interest rates could be predicted
b) long term interest rates will be about the same as short term interest rates
c) long term interest rates will tend to be higher than short term interest rates
d) both long and short term interest rate would be expected to fall sharply
Explanation / Answer
on solving the answer is definitely option C IE c) long term interest rates will tend to be higher than short term interest rates..
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.