Business, 27.06.2019 04:40 kenyaa63

Suppose the reserve requirement is 10% and that the federal reserve has established a 6% target for the federal funds rate. the federal funds market and the money market are in equilibrium as shown in the graphs below. a. suppose the federal reserve decides it needs to lower the federal funds rate from 6% to 5%. it will require a $20 billion open market purchase to achieve this goal. show this change in the supply of reserves curve and indicate the new quantity of reserves in the federal funds market. instructions: use the tool provided 'sff,1' to draw a new supply of reserves curve. plot only the endpoints of the line (2 points total). use the tool provided 'new quantity' to plot the new equilibrium quantity of reserves in the federal funds market. b. if the federal reserve makes an open market purchase of $20 billion, the total money supply will increase by $ billion. c. when the total money supply increases, there will be an adjustment to the interest rate in the money market. use the money market graph and show the change in the money supply and interest rates in the money market. instructions: use the tool provided 'ms,1' to draw a new money supply curve. plot only the endpoints of the line (2 points total). use the tool provided 'new equilibrium' to plot a new equilibrium interest rate. d. when the fed lowers the target federal funds rate, reserves , causing the money supply to , and interest rates (for borrowing and lending money) will .

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 22:20

On january 1, jackson, inc.'s work-process inventory account showed a balance of $ 66,500. during the year, materials requisitioned for use in production amounted to $ 70,500, of which $ 67,700 represented direct materials. factory wages for the period were $ 210,000 of which $ 187,000 were for direct labor. manufacturing overhead is allocated on the basis of 60% of direct labor cost. actual overhead was $ 116,050. jobs costing $ 353,060 were completed during the year. the december 31 balance in work-process inventory is

Answers: 1

Answer

Business, 22.06.2019 10:00

Suppose an economy has only two sectors: goods and services. each year, goods sells 80% of its outputs to services and keeps the rest, while services sells 62% of its output to goods and retains the rest. find equilibrium prices for the annual outputs of the goods and services sectors that make each sector's income match its expenditures.

Answers: 2

Answer

Business, 23.06.2019 01:30

How is systematic decision making related to being financially responsible

Answers: 1

Answer

Business, 23.06.2019 12:30

Zowns a disability income policy with a 30-day elimination period. z contracts pneumonia that leaves him unable to work from january 1 until january 15. z then becomes disabled from an accident on february 1 and the disability lasts until july 1 the same year. z will become eligible to receive benefits starting on

Answers: 2

Answer

You know the right answer?

Suppose the reserve requirement is 10% and that the federal reserve has established a 6% target for...

Questions