Consider the following statement: Central banks control only short-term interest rates, but long-term interest rates are most

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Consider the following statement: “Central banks control only short-term interest rates, but long-term interest rates are most important for economic activity. Therefore, monetary policy is not important in determining output.” Do you agree with this statement? Briefly explain.
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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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