Which of the following is a true statement concerning interest rates?
A) short-term rates are not influenced by inflation
B) long-term rates are influenced by current demands for money.
C) inflation during the 1970s and early 1980s had a large effect in boosting interest rates and changing expectations of future rates.
D) long-term rates have been much more volatile than short-term rates from the 1970s until today.
Correct Answer:
Verified
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