Which of the following statements is true?
A) Controlling the growth of the supply of money will only have predictable effects on interest rates if the growth in the demand for money is unpredictable.
B) Volatile interest rates can be detrimental to economic growth.
C) Interest rates can become volatile because the demand for money is controlled.
D) Interest rates can become volatile because the supply for money is fluctuating.

Question

Quizplus · Accepted Answer

Volatile interest rates can make borrowing and lending money unpredictable, which can discourage investment and economic growth. A, C, and D are incorrect because they do not accurately describe the relationship between money supply, demand, and interest rates.

Which of the Following Statements Is True