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In this problem, we consider the diagram of supply and demand in the market for reserves. (3 marks) Why is the supply of funds when
In this problem, we consider the diagram of supply and demand in the market for reserves.
- (3 marks)Why is the supply of funds when a federal funds rate (or cash rate) is equal to the discount rate?
- (3 marks) Why is the demand for funds when a federal funds rate (or cash rate) is equal to the interest rate on reserves?
- (3 marks) Explain why in an efficient market, a return under optimal forecasts equals an equilibrium return and all unexploited profit opportunities will be eliminated by using their relationship within two to three sentences.
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Applied Regression Analysis And Other Multivariable Methods
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
5th Edition
1285051084, 978-1285963754, 128596375X, 978-1285051086
