According to economists, short-term interest rates apply to loans and savings _____, and long-term interest rates apply to loans and savings:
A) when product markets are not at equilibrium; when product markets are at equilibrium.
B) when all market adjustments have occurred; when markets have not yet completed all adjustments.
C) for less than one year; for more than one year.
D) when credit markets are at equilibrium; when credit markets have not yet adjusted to equilibriums.

Question

Quizplus · Accepted Answer

Short-term interest rates typically apply to loans and savings with a duration of less than one year, while long-term interest rates apply to those with a duration of more than one year.

According to Economists, Short-Term Interest Rates Apply to Loans and Savings