In an effort to maintain price stability, it is expected that the european central bank will raise interest rates in the future. which of the following is the most likely effect of such an action on shortminus−term and longminus−term interest rates in europe?
a. longminus−term interest rates will tend to be higher than shortminus−term interest rates.
b. no relative change in short and long term interest rates could be predicted.
c. both longminus− and shortminus−term interest rates would be expected to fall sharply.
d. longminus−term interest rates will be about the same as shortminus−term interest rates.