Economic models predict interest rates by estimating the statistical relationships between the and the resulting .
A) level of interest rates; measures of economic output
B) past level of interest rates; future level of interest rates
C) measures of economic output; level of interest rates
D) prior level of GNP; future level of interest rates

Question

Quizplus · Accepted Answer

Economic models often predict interest rates by analyzing how measures of economic output, such as GDP or inflation, influence the level of interest rates.

Economic Models Predict Interest Rates by Estimating the Statistical Relationships