The standard discussion of monetary policy is based on the assumption that:
A. short-term rates will fall when the Fed pushes up long-term interest rates.
B. short-term rates will rise when the Fed pushes up long-term interest rates.
C. long-term rates will fall when the Fed pushes up short-term interest rates.
D. long-term rates will rise when the Fed pushes up short-term interest rates.
Answer: D
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