Actually many interest rates in the economy

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There are actually many interest rates in the economy. However, we can talk about THE interest rate because

The interest rate on short-term government bonds is the key interest rate to follow.

The interest rate on long-term government bonds is the key interest rate to follow.

Interest rates tend to move together, that is, when one interest rate increases all of them tend to increase and when one interest rate decreases all of them tend to decrease.

Reference no: EM131880303

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