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Business, 24.04.2020 22:01 duhitzmay9395
Suppose the target range for the federal funds rate is 2 to 2.5 percent but that the equilibrium federal funds rate is currently 2.3 percent. Assume that the equilibrium federal funds rate falls (rises) by 1 percent for each $120 billion in repo (reverse repo) bond transactions the Fed undertakes. If the Fed wishes to raise the equilibrium federal funds rate to the top end of the target range, will it repo or reverse repo bonds to non-bank financial firms
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Suppose the target range for the federal funds rate is 2 to 2.5 percent but that the equilibrium fed...
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