9. Macroeconomic factors that influence Interest rate levels Apart from risk components, several macroeconomic factors-such as Federal Reserve (the Fed) policy, federal budget deficit or surplus, international factors, and levels of business activity-influence interest rates. Based on your understanding of the impact of macroeconomic factors, identify which of the following statements are true or false: Statements True False Actions that lower short-term interest rates will always lower long-term interest rates. The Federal Reserve Board has a significant influence over the level of economic activity, inflation, interest rates in the United States. Loo During recessions, short-term interest rates decline more sharply than long-term interest rates. When the Fed increases the money supply, short-term interest rates tend to decline