Diffrence between federal funds rate and the prime interest

Reference no: EM1348023

Q. Diffrence between Federal funds rate and the prime interest rate. Explain why is one higher than the other? Why do changes in the two rates closely track one another?

Q. Suppose households supply 430 billion hours of labor per year and have a tax elasticity of supply of 0.20. If the tax rate is increased by 10 percent, by how many hours will the supply of labor decline?

Reference no: EM1348023

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