The long-term, risk-free interest rate is driven by inflationary expectations, economic growth, the money supply, and the budget deficit.

Question

The long-term, risk-free interest rate is driven by inflationary expectations, economic growth, the money supply, and the budget deficit. ​

Quizplus · Accepted Answer

The long-term, risk-free interest rate is influenced by various factors including inflationary expectations, economic growth, the money supply, and the budget deficit, as these elements affect the overall demand for and supply of funds in the economy, thereby influencing interest rates.

The Long-Term, Risk-Free Interest Rate Is Driven by Inflationary Expectations