Relationship between discount rate and federal funds rate

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Reference no: EM132181900

Question: Using the graph for the market for reserves show and explain:

a. The relationship between the discount rate and Federal Funds rate and the interest rate on reserves.

b. Show the condition that has to exist for open market operations to have an affect on the federal funds rate.

c. Show the condition that has to exist for a change in the discount rate to have an affect on the federal funds rate. It wants graph per each reserve and explain.

Reference no: EM132181900

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