How does affecting the nominal federal funds interest rate

Assignment Help Business Economics

Reference no: EM13983907

1. The federal reserve has power to adjust the nominal federal funds rate of interest. How do they do this? How is this different from quantitative easing?

2. How does affecting the nominal federal funds interest rate address recessionary gaps in the economy?

Reference no: EM13983907

Questions Cloud

Appropriate horizontal- and vertical-axis intercepts : The market for lemonade in a town consists of two lemonade stands (i.e., firms), 1 and 2. An agricultural economist estimates the following demand for lemonade in this town: Q = 300 - P, where Q is the market quantity and P is the market price. find ..

Policies redistributes income across generations : Explain how each of the following policies redistributes income across generations. Is the redistribution from young to old, or from old to young? a. an increase in the budget deficit b. more generous subsidies for education loans c. greater investme..

Find optimal number of bottles to package together for sale : Suppose a typical consumer's inverse demand function for bottled water at a resort area where one firm owns all the rights to a local spring is given by P = 15 - 3Q. The marginal cost for gathering and bottling the water is $3 per gallon. Find the op..

What is meant by the concept of substitutes for leadership : Define power from an organizational behavior perspective. What is the difference between power and influence? What are the six forms of position power and the four forms of personal power? Briefly describe each form. What is leadership and how does i..

How does affecting the nominal federal funds interest rate : The federal reserve has power to adjust the nominal federal funds rate of interest. How do they do this? How is this different from quantitative easing? How does affecting the nominal federal funds interest rate address recessionary gaps in the econo..

The dentist mark up her price over marginal cost : A local dentist read an article published by the American Dental Association estimating that the elasticity of demand for the representative dentist's services is -2.5. How much should the dentist mark up her price over marginal cost?

Advertisement would likely make demand for good : Other things remaining unchanged, advertisement would likely make demand for a good more price elastic. The cross price elasticity demand for a good with respect to the price of a complementary good is negative. With capital measured along the vertic..

Business with the intention of earning : PiR8 Systems has borrowed a sum of $2.5M from a bank at interest rate of 4.5%. The company also borrowed $0.5M from other sources at a interest rate of 4%. Additionally the owners have invested $2.5M in the business with the intention of earning 15% ..

Ratio between the price of labor and the price of capital : If the ratio between the price of labor and the price of capital (w/r) is smaller than the ration between the marginal product of labor and the marginal product of capital, the firm should hire more capital. Normally the ratio between the price of a ..

User Account

All Pages