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 stacements is true or fakse. Statements If the fed increases the money supply, short-teim interest rates tend to decline. When the econorny is weakening, the Fed is lkely to increase short-term interest rates. During the credit cris of 2005 , investors around the world were fearful about the collapse of real estate markets, shaky stock markets, and illquidity of several securities in the Unated Stotes and several other nations. The demand for U.5. Treasury bonds increased, which led to a rise in their price and a decline in their yields. When the economy is weakening, the fed is lkely to decrease short-term interest rates