Why has the Federal Reserve chosen to focus on the federal funds rate rather than some interest

Question:

Why has the Federal Reserve chosen to focus on the federal funds rate rather than some interest rate as a tool of monetary policy?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics A Contemporary Introduction

ISBN: 9781305505469

11th Edition

Authors: William A. McEachern

See More Books

Question Posted: Oct 07, 2023 11:59 PM

See More Questions

In 2008 and 2009, the US economy and many others around the world experienced a financial crisis and a severe downturn in economic activty. In many ways, it was the worst macroeconomic event in more...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
The article below discusses a topic called "inflation targeting". Read the article, then create a post in which you state (a) how inflation targeting is related to expectations in the economy, (b)...
41.(6 pointa) In the following balanced reaction, magnesium metal (Mg) reacts with carbon dioxide gas (CO) o form solid magnesium exide (MgO) and solid carbon (C). How many grams of carbon dioxide...
What led India in the 1990s to abandon its system of import substitution, and what growth strategy did India adopt?
need both done . do not attempt if you cant May 1 Sold merchandise for $1,140 cash (cost is $870 ) to Miller. May 4 Purchased nerchandise on credit from Allen for 54,300 , terns n/30. May 5 The...
How does a multidimensional structure allow a firm to realize economies of scope?
You are the CEO of a large organization that implemented a data warehouse for internal analysis of corporate data. The operations manager has written you a memo advocating opening the data warehouse...
During January, Luxury Cruise Lines incurs employee salaries of $1.6 million. Withholdings in January are $122.400 for the employee portion of FICA $240,000 for federal income tax, $100,000 for state...
In what sense has greater Fed transparency served as an additional policy tool, given that the federal funds rate could go no lower?
What is the impact of a decrease in the required reserve ratio on aggregate demand?
Which of the following statements is false? a. A corporation with average sales in excess of $25,000,000 must use the accrual method of accounting. b. The charitable contributions of a corporation...
Show how you would go about balancing the following equations: Cu + HNO3 Cu(NO3)2 + NO + H2O HIO3 + Fel2 + HCI FeCl3 + ICI + H2O 2.Conservation of mass A student places 0.58 g of iron and 1.600 g...
Sales MOSS COMPANY Income Statement For Year Ended December 31, 2021 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes...
Prior to the Covid-19 epidemic, Master's and Ph.D. programs in psychology required applying students to submit their scores on the standardized graduate admission exam (GRE). For the past three...
Benicio wants to make sure that the Sales table does not contain any duplicate records, which would make any sales analysis incorrect. Identify and remove duplicate records in the Sales table as...
University Car Wash purchased new soap dispensing equipment that cost $261,000 including installation. The company estimates that the equipment will have a residual value of $27,000. University Car...
Why are Nash equilibrium identified by the strategies rather than the payoffs involved?
If someone's Z-score for a variable was 0.67. Their score is a significant extreme score. Their score is not significant. O Their score is slightly above average. O Their score is an outlier.
Suppose Bank A, which faces a reserve requirement of 10 percent, receives a $1,000 deposit from a customer. a. Assuming that it wishes to hold no excess reserves, determine how much the bank should...
What are the two measures of the money supply and how is each measure determined?
What are some of goals of the Dodd-Frank legislation, and what are some possible unintended consequences of the measure?
The steps in preparing closing entries under the periodic inventory system include all of the following except a a.debit each revenue account, purchases discounts, and purchases returns and...
The unadjusted trial balance of Larkspur, Inc., a private company following ASPE, at December 31, 2020, is as follows: Debit Credit Cash $17,800 Accounts receivable 105,100 Allowance for doubtful...
assuming that sales and operating income remain the same, which of the following statements about a company's return on investment is correct a. it will increase if operating assets increase b. it...

Why has the Federal Reserve chosen to focus on the federal funds rate rather than some interest

Question:

Step by Step Answer:

As you know the federal funds rate is the interest rate banks charge ...View the full answer

Economics A Contemporary Introduction

Students also viewed these Business questions