ack to Assignment Average: /1 9. Macroeconomic factors that influence interest rate levels Apart from risk components, several macroeconomic factors-such as Federal Reserve (the Fed) policy, federal budget defi factors, and levels of business activity-influence interest rates basad or undertandngof the impat f maoncts, ldent g statements are trueor Statements True False When the Fed increases the money supply, short-term interest rates tend to decline. When the economy is weakening, the Fed is likely to decrease short-term interest rates. During recessions, short-term interest rates decline more sharply than long-term interest rates. When the economy is weakening, the Fed is likely to increase short-term interest rates. 0 Grade It Now MacBook Air o: FI F2 F4 F6 2 4