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1 year ago

If the fed wants to raise the federal funds rate by one-half of a percentage point, it should _____

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1 answer:

Assoli18 [71]1 year ago

8 0

If the fed wants to raise the federal funds rate by one-half of a percentage.

The bank should reduce the reserves by $50 billion.As initiallly the supply curve of reserves is S11 , when the supply decreases to S12 , it leads to the increase in the feds funds rate to 6.

Federal funds, often referred to as fed funds, are excess reserves that commercial banks and other monetary establishments deposit at local Federal Reserve banks; these funds may be lent, then, to different market individuals with inadequate cash available to satisfy their lending and reserve wishes.

The Federal Reserve raised the goal range for the fed budget fee by way of at some point of its assembly, the fourth consecutive rate hike, and pushing borrowing charges to the highest level considering the fact that matching market forecasts.

Federal budget are reserves held in a financial institution's Federal Reserve bank account. If a financial institution holds extra fed funds than is required to cover its law D reserve requirement, those excess reserves may be lent to some other financial organization with an account at a Federal Reserve bank.

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1 year ago

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3 years ago

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If an industry is perfectly competitive or monopolistically competitive, then the government has relatively little reason for co

aivan3 [116]

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4 years ago

Assume that the marginal propensity to consume is 0.8 and that potential output is $800 billion. If real GDP is $850 billion, to

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The following policies would bring the economy to potential output is Decrease government spending by $10 billion.

<h3>What is Marginal Propensity?</h3>

The "Marginal Propensity" to consume is defined as calculate quantification of money that consumers are ready to spend.

The term "Marginal propensity" to consume is term used in economics. It measures monetary value which consumer is willing to spend to buy goods and services instead of saving it.

The "Marginal Propensity" to consume tends to increase economic activities of country by keeping cash flowing and by not keeping it stagnant. It also helps in increasing trade value and quality and cost of products because it increases healthy competition among companies and in which consumers are ultimately benefitted.

Therefore , we can conclude that the correct option is C.

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2 years ago

The ___________ is the primary agency responsible for drawing up the budget.

aleksley [76]

The government is the primary agency responsible for drawing up the budget.

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