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Give answer of Q17 in 15 mins i will give you thumb up The following graph shows a hypothetical demand function for federal funds. Currently,
Give answer of Q17 in 15 mins i will give you thumb up
The following graph shows a hypothetical demand function for federal funds. Currently, the total amount of reserves in the banking system is $50 billion, the discount rate is 3.5 percent, and interest on reserves equals IOR=1 percent. The Fed wants to reduce the equilibrium fed funds rate to 1.5% by reducing the discount rate. In that case, it has to stand ready to provide $X billion of discount loans to the commercial banks at the new discount rate. What is the value of X ? a. X=$0 billion b. X=$10 billion c. X=$20 billion d. X=$30 billion e. None of the aboveStep by Step Solution
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