What kind of interest rates does forward guidance affect?
(i) the federal funds rate
(ii) the discount rate
(iii) 30-year mortgage rates
(iv) 10-year business loans
A) (i) only
B) (ii) and (iii)
C) (iii) and (iv)
D) (I) , (ii) , (iii) , and (iv)
Correct Answer:
Verified
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