Question: Why do interest rates on different types of borrowing, such as federal funds and mortgages, tend to track each other and the inflation rate? O
Why do interest rates on different types of borrowing, such as federal funds and mortgages, tend to track each other and the inflation
rate?
O They are all shortterm maturities.
O They are all longterm maturities.
O They are all affected similarly by economic conditions.
O They all have the same risks.
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