Why is the Fed funds rate the interest rate that the Fed most directly controls?

Question:

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

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics

ISBN: 978-0077307110

8th edition

Authors: David Colander

See More Books

Question Posted: Feb 12, 2016 05:05 AM

See More Questions

Why do security traders pay so much attention to the fed funds rate? Why is the fed funds rate so important?
Compare and contrast the Fed funds rate and the discount rate. Which do you think is more volatile? Which market do you think is more active? Why?
Use the data provided for Gotbucks Bank, Inc., to answer this question. Notes to the balance sheet: Currently, the fed funds rate is 8.5 percent. Variable-rate loans are priced at 4 percent over...
Explicitly justify relationships (11.5.3) between the compliances of the plane stress and plane strain theories. Equation 11.5.3 B11 B22 B66 = S11 S33-S2 $33 S22 S33-S23 S33 S66 S33 - S36 S33 B12 B16...
The HRZ Company maintains a perpetual inventory system. Clerks in the accounting department post the data manually from receiving reports; materials requisition forms, copies of purchase orders, and...
Lu Corp. erected and placed into service an offshore oil platform on January 1, 2017 at a cost of $10 million. Lu is legally required to dismantle and remove the platform at the end of its nine-year...
Equivalent unit computations, benchmarking, ethics. Margaret Major is the corporate controller of Leisure Suits. Leisure Suits has 20 plants worldwide that manufacture basic suits for retail stores....
The general ledger of Pack-N-Ship at June 30, 2012, the end of the companys fiscal year, includes the following account balances before adjusting entries. The additional data needed to develop the...
QUESTION 6 The shareholders equity section of Mayberry Corporation, as of the end of 2021, follows. Mayberry began operations in 2017. The 5,000 shares of preferred stock have been outstanding since...
The following data represent the number of passengers per flight in a sample of 50 flights from Wichita, Kansas, to Kansas City, Missouri. a. Construct a dot plot for these data. b. Construct a...
Demonstrate the effect of contractionary monetary policy in the AS/AD model.
What is the relationship between tools, operating targets, intermediate targets, and ultimate targets?
The first discussion of comparative advantage appears in On the Principles of Political Economy and Taxation, a book written by the British economist David Ricardo in 1817. Ricardo provided a famous...
Companies in the tire manufacturing business use a lot of property, plant, and equipment. Tyrell Rubber and Tire Corporation and Maxwell Rubber and Tire Manufacturing are two of the leading...
(7%) Problem 11: A student launches a small rocket which starts from rest at ground level. At a height h = 2.09 km, the rocket reaches a speed of v = 291 m/s. At that height, the rocket runs out of...
2. For the following three sets of electric field lines, what charge or charges would make such lines? Indicate their locations and type of charge (e.g. positive/negative) a.
What is the most important take-home point that you learned from this video? https://www.youtube.com/watch?v=nUZqvsF_Wt0 2. Policy Problems. What is onepolicy that creates inequality in the labor...
An employee had $20,300 in gross earnings up to September 20, 2021. She has the following information for her pay for the week ending September 27, 2021. Her employer contributes 100% toward CPP and...
A large mail-order company wants to find the effect of sending catalogs to potential customers. Of the 600 potential customers who have just received the new catalogs, 123 responded with an order...
5. Convert the following ERD to a relational model. SEATING RTABLE Seating ID Nbr of Guests Start TimeDate End TimeDate RTable Nbr RTable Nbr of Seats RTable Rating Uses EMPLOYEE Employee ID Emp...
Yam Manufacturing Corporation issued stock with a par value of $\$ 67,000$ and a market value of $\$ 503.500$ to purchase 95 percent of the stock of Spencer Corporation on August 30, 20X1. On...
The number of hours studied and the scores that students earned are shown. Creating a scatter chart, which statement is true regarding the relationship between the hours of study and scores earned....
Five samples of 12 each were extracted from a population. Based on the central limit theorem, what is the best estimate of the SD of the population? A B C D E 270 230 290 238 315 303 274 270 246 244...
In a national test, the mean score was 1575 and the standard deviation was 85. What % of the students earned a score between1500 and 1600 if the scores were Normally distributed?

Why is the Fed funds rate the interest rate that the Fed most directly controls?

Question:

Step by Step Answer:

As the Fed buys and sells bonds it changes reserve...View the full answer

Macroeconomics

Students also viewed these Economics questions