Answered step by step
Verified Expert Solution
Question
1 Approved Answer
There are actually many interest rates in the economy. However, we can talk about THE interest rate because The interest rate on short-term government bonds
There are actually many interest rates in the economy. However, we can talk about THE interest rate because
The interest rate on short-term government bonds is the key interest rate to follow. |
The interest rate on long-term government bonds is the key interest rate to follow. |
Interest rates tend to move together, that is, when one interest rate increases all of them tend to increase and when one interest rate decreases all of them tend to decrease. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started