Question: How does the overnight loans rate influence the long-term real interest rate? From 2007 to 2009, the long-term real interest rate paid by the safest

How does the overnight loans rate influence the long-term real interest rate?

From 2007 to 2009, the long-term real interest rate paid by the safest corporations increased from 2.3 percent to 3.8 percent. During that same period, the overnight loans rate fell from 4.5 percent to 0.25 percent a year.

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