Question: Discuss why the Friedman effect regarding the effect of changes in Fed policy on interest rates in the short-run versus the long-run, should apply only

Discuss why the Friedman effect regarding the effect of changes in Fed policy on interest rates in the short-run versus the long-run, should apply only to interest rates on short-term securities. How should a permanent increase in the growth rate of the money supply affect the term structure of interest rates in the short-run? In the long-run?

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