Suppose the current federal funds rate is 0.25% and the Fed chooses to raise its target to 0.5%. Make use of a graph of the federal funds market to show how it will use open market operations to accomplish this
What will be an ideal response?
The Fed will conduct open market sales, reducing the supply of reserves until the new equilibrium federal funds rate rises to 0.5%.
Economics
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If an epidemic hits a Malthusian economy, the long-term consequence is
A) an increase in the standard of living. B) a reduction in the standard of living. C) no change in the standard of living. D) dependent on the population growth rate.
Economics
All of the following generate positive externalities EXCEPT
A) public health programs. B) lower marginal tax rates. C) requiring proof of inoculation before entering college. D) requiring proof of inoculation before entering elementary school.
Economics