Answered step by step
Verified Expert Solution
Question
1 Approved Answer
30 2 pts The Fed goes about changing the federal funds rate differently since October 2008 than before October 2008. The difference is that O
30 2 pts The Fed goes about changing the federal funds rate differently since October 2008 than before October 2008. The difference is that O before October 2008, the Fed would use open market operations to change the federal funds rate and since October 2008 it uses the discount rate to change the federal funds rate. O before October 2008, the Fed would often use open market operations to change the federal funds rate and since October 2008 it uses both the interest on reserves (IOR) rate and the overnight reverse repurchase (ON-RRP) rate to change the federal funds rate. O since October 2008, the Fed uses the required reserve ratio to change the federal funds rate and before October 2008 it used the discount rate. O This is a trick question. The Fed changed the federal funds rate the same way before October 2008 as it has since October 2008
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started