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 During the credit crisis of 2008, investors around the world were fearful about the collapse of O real estate markets, shaky stock markets, and illiquidity of several securities in the United States and several other nations. The demand for U.S. Treasury bonds increased, which led to a rise in their price and a decline in their yields. Actions that lower short-term interest rates will always lower long-term interest rates. The larger the federal deficit, 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