$\text { 38. Which of the following statements is true? }$
A)The prices of debt securities fall during recessions.
B)Interest rates on neither the short-term securities nor the long-term securities fall in recession.
C)Interest rates on long-term securities fall more than the interest rates on short-term securities in recession.
D)Interest rates on short-term securities fall more than the interest rates on long-term securities in recession.

Question

Quizplus · Accepted Answer

During a recession, central banks often lower short-term interest rates to stimulate the economy, causing short-term rates to fall more than long-term rates.

38. Which of the following statements is true? \text { 38. Which of the following statements is true? } 38. Which of the following statements is true?

$\text { 38. Which of the following statements is true? }$