Which one of the following statements about interest rates is incorrect?
A) Bond prices and interest rates change inversely with one another.
B) The expected rate of inflation affects current market interest rates.
C) Short-term interest rates are not as volatile as long-term interest rates.
D) Interest rates are directly related to the level of output in the economy.

Question

Quizplus · Accepted Answer

Short-term interest rates are generally more volatile than long-term interest rates due to their sensitivity to immediate economic changes and monetary policy adjustments.

Which One of the Following Statements About Interest Rates Is