When economists speak of "the" interest rate, they mean:
A)the rate on 90-day Treasury bills.
B)the overnight rate.
C)the mortgage rate.
D)no particular interest rate; it's usually an innocuous assumption since real interest rates tend to move up and down together.

Question

Quizplus · Accepted Answer

Economists often refer to "the" interest rate as a general concept because various interest rates in the economy tend to move in tandem due to underlying economic conditions.

When Economists Speak of "The" Interest Rate, They Mean