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:

a. Long-term interest rates are not as sensitive to booms and recessions as are short-term interest rates.
i. True
ii. False
b. If the Fed injects a huge amount of money into the markets, inflation is expected to decline, and long-term interest rates are expected to rise.
i. True
ii. False
c. When the Fed increases the money supply, short-term interest rates tend to decline.
i. True
ii. False
d. When the economy is weakening, the Fed is likely to decrease short-term interest rates.
i. True
ii. False

a. True

b. False

c. True

d. True

Explanation:

Long-term interest rates are not as sensitive to booms and recessions as are short-term interest rates.

i. True

b. If the Fed injects a huge amount of money into the markets, inflation is expected to decline, and long-term interest rates are expected to rise.

ii. False

c. When the Fed increases the money supply, short-term interest rates tend to decline.

i. True

d. When the economy is weakening, the Fed is likely to decrease short-term interest rates.

i. True

answer; ///usually the ( irs ) selects returns that are the most likely have errors,based on complex criteria;

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.