The expected future short-term interest rate is determined by all of the following except?
A)expectations about the future money supply
B)expectations about future income
C)expectations about the future price level
D)the current short-term interest rate

Question

Quizplus · Accepted Answer

The current short-term interest rate may influence the expected future short-term interest rate, but it is not a determining factor. The expected future short-term interest rate is primarily influenced by expectations about future money supply, income, and price level.

The Expected Future Short-Term Interest Rate Is Determined by All