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Explain the role of the two primary interest rates (discount rate and interest rate) that the Fed currently uses to establish its target for the
Explain the role of the two primary interest rates (discount rate and interest rate) that the Fed currently uses to establish its target for the federal funds rate. Suppose they decide to raise the target range to 0.50-0.75% at the December 2021 FOMC meeting. How must it adjust these two rates to achieve the new target and how might this affect bank behavior? You can draw a fully labeled graph of the market for bank reserves to demonstrate your point.
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