The Fed has the greatest influence over _____ interest rates.Investment spending depends on _____ interest rates.
A) short-term;short-term
B) short-term;long-term
C) long-term;short-term
D) long-term;long-term

Question

Quizplus · Accepted Answer

The Federal Reserve primarily influences short-term interest rates through its monetary policy actions, such as setting the federal funds rate. However, investment spending by businesses and individuals tends to be more sensitive to long-term interest rates because investments are often financed over longer periods.

The Fed Has the Greatest Influence Over _____ Interest Rates