In Country A suppose that changes in short-term interest rates translate quickly into changes in long-term interest
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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.
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Related Book For 
Money Banking and Financial Markets
ISBN: 978-1259746741
5th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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