Question:

8 Macroeconomic factors that influence interest rate levels

Last updated: 6/13/2023

8 Macroeconomic factors that influence interest rate levels

8 Macroeconomic factors that influence interest rate levels 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 The larger the federal deficit other things held constant the higher are interest rates Actions that lower short term interest rates will always lower long term interest rates Long term interest rates are not as sensitive to booms and recessions as are short term interest rates The Federal Reserve s ability to use monetary policy to control econo interest rates are highly dependent on interest rates in other parts of the world activity in the Unite States is limited because US True False OOO O