Interest rates move ______ with expected inflation; _____ with economic activity.
A) directly/inversely
B) inversely/inversely
C) directly/directly
D) inversely/directly

Question

Quizplus · Accepted Answer

Interest rates typically move directly with expected inflation because higher inflation often leads to higher interest rates. They also move directly with economic activity, as stronger economic activity can lead to higher demand for credit and thus higher interest rates.

Interest Rates Move ______ with Expected Inflation; _____ with Economic

Interest Rates Move __ with Expected Inflation; _ with Economic