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Apart from risk components, several macroeconomic factors-such as Federal Reserve (the Fed) policy, federal budget delict or surplus, international factors, and levels of business activity-influence

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Apart from risk components, several macroeconomic factors-such as Federal Reserve (the Fed) policy, federal budget delict or surplus, international factors, and levels of business activity-influence interest rates. Based on your uncerstanding of the impact of macroeconomic factors, identily which of the following statements are true or false: Statements True False If the Fed Injects a huge amount of money into the markets, inflation is expected to decline, and long-term interest rates are expected to rise During recessions, short-term interest rates decline more sharply than long-term interest The lerger the federal defict, other things held constant, the higher are interest rates The Federal Reserve Board has a significant influence over the level of economic activity inflation, interest rates in the United States. OO Continue without 3 F7 5 6

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