Loanable funds markets, not central banks, determine long-run interest rates.

Name: Loanable funds markets, not central banks, determine long-run interest rates.
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Question

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Long-run interest rates are primarily determined by the supply and demand for loanable funds in the credit market, not by central banks. Central banks may influence short-term interest rates through their monetary policy, but their influence on long-run interest rates is limited.

Loanable Funds Markets, Not Central Banks, Determine Long-Run Interest Rates