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? They

Why do interest rates on different types of borrowing, such as federal funds and mortgages, tend to track each other and the inflation rate?

They all have the same risks.

They are all affected similarly by economic conditions.

They are all long-term maturities.

They are all short-term maturities.

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