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The answers are based on Shiller, 1979, Can the Fed control real interest rates? Part I (Introduction) I. What is the real interest rate? II.

The answers are based on Shiller, 1979, Can the Fed control real interest rates?" Part I (Introduction) I. What is the real interest rate? II. What are the three hypotheses regarding the Federal Reserve's control of the real interest rate? III. Suppose that after the Federal Reserve adjusted its policy rule (e.g., adjusted the way the Fed Funds Rate responds to inflation) our economy takes several years'transition period to a new equilibrium. Does this indicates that the Federal Reserve's policy effectiveness interval is very long

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