In country a changes in short-term interest rates translate


In Country A suppose that changes in short-term interest rates translate quickly into changes in long-term interest rates, while in Country B long-term interest rates do not respond much to changes in short-term rates.

In which country would you expect the interest-rate channel of monetary policy to be stronger? Explain your answer.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: In country a changes in short-term interest rates translate
Reference No:- TGS01607077

Expected delivery within 24 Hours