What happens to the funds rate

Reference no: EM131142017

Suppose the economy's income falls, reducing the demand for money. If the Fed keeps its target for the funds rate constant, what happens to reserve demand and the supply of reserves? If instead the Fed keeps the supply of reserves constant, what happens to the funds rate?

Reference no: EM131142017

Questions Cloud

Determine the capacitive reactance-to-neutral : Determine the capacitive reactance-to-neutral in Ω-m per phase and the capacitive reactance of the line in Ω per phase. Neglect the effect of the earth plane.

What is the reward-to-risk ratio in the market if the risk : Asset A has an expected return of 11.5 percent and a beta of .9. What is the reward-to-risk ratio in the market if the risk-free rate is 4.1 percent?

Explain your rationale behind the design of your dfd : Explain and support the database schema with relevant arguments that support the rationale for the structure. Note: The minimum requirement for the schema should entail the tables, fields, relationships, views, andindexes.

How does your answer depend on the behavior of the fed : Does money growth cause inflation, or does inflation cause money growth? Discuss. How does your answer depend on the behavior of the Fed?

What happens to the funds rate : If the Fed keeps its target for the funds rate constant, what happens to reserve demand and the supply of reserves? If instead the Fed keeps the supply of reserves constant, what happens to the funds rate?

Advantages of toughened glass insulators versus porcelain : What is a high-temperature conductor and What are its advantages over conventional ACSR and AAC conductors? What are its drawbacks?

What is the expected return on a portfolio which is invested : what is the expected return on a portfolio which is invested 60 percent in stock A and 40 percent in stockB?

Find the average amount for fixed assets : Estimate the levels of permanent and temporary current assets for Comfin over these months. Find the average amount for fixed assets, permanent current assets.

Identify possible risks constraints and assumptions : Describe the scope and analyze how to control the scope. Identify possible risks, constraints, and assumptions. Describe the integration with other systems and infrastructure. Note: Database and interface design, security, and networking should be ..

User Account

All Pages