Federal funds rate equals to discount rate

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Reference no: EM131198036

Explain how does the Fed's open markey sales of $1 billion U.S. Treasury bond affect the market federal funds rate for each case.

a) when the federal funds rate equals to discount rate before the operation.

b) when the federal funds rate is lower than discount rate and higher than deposit rate before the operation.

c) when the federal fund rate equals to deposit rate before the operation.

Reference no: EM131198036

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