The Fed _{--------------------}influence the real interest rate in the short run_{--------------------} and influence the real interest rate in the long run. A)can; can B)cannot; cannot C)might be able to; might be able to D)can; cannot E)cannot; can

Question

Quizplus · Accepted Answer

The Fed can influence the real interest rate in the short run through monetary policy actions like changing the federal funds rate. However, in the long run, real interest rates are determined by factors such as productivity and savings, which are beyond the Fed's control.

The Fed --------------------influence the Real Interest Rate in the Short

The Fed _{--------------------}influence the Real Interest Rate in the Short