Macroeconomic factors that influence interest rate levels

1. T or F: During the credit crisis of 2008, investors around the worls were fearful about the collapse of real estate markets, shaky stock markets, and illiquidity of several securities in the US and several other nations. The demand for US treasury bonds increased, which led to a rise in their price and a decline in their yields.

2. T or F: When the ecnomy is weakening, the Fed is likely to increase short-term interest rates.

3. T or F: When the Fed increses the money supply, short-term interest rates tend to decline.

4. T of F: the Federal Reserve Board has significant influence over the level of economic activity, inflation, and interest rates in the US.