Question: Question 2.4 Using equation (1), explain how the Fed influences long-run interest rates by setting the short-run interest rate. How is this mechanism related to

 Question 2.4 Using equation (1), explain how the Fed influences long-run

Question 2.4 Using equation (1), explain how the Fed influences long-run interest rates by setting the short-run interest rate. How is this mechanism related to forward guidance

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