By how much will quantity of federal funds have to change

Assignment Help Econometrics
Reference no: EM13219791

Suppose that the demand for Federal funds curve is such that the quantity of funds demanded changes by $160billion for each 1 percent change in the Federal funds interest rate. Also, assume that the current Federal funds rate is at the 3 percent rate that is targeted by the Fed. Now suppose that the Fed retargets the rate to 1.5 percent.

By how much will the quantity of Federal funds have to change for the equilibrium to occur at the new target rate?

Reference no: EM13219791

Questions Cloud

What are the preliminary observations about the depression : A sample of 60 individuals, all in reasonably good health, was selected; 20 individuals were residents of Florida, 20 were residents of New York, and 20 were residents of North Carolina.Each of the individuals sampled was given a standardized test..
Write a program that simulates an xor operation : For example, if the input is 1011, then the output will be 1. You can assume that the input word is guaranteed to contain only 0s and 1s.
Explain solution yielded a sorbitol syrup with a pyridine : Example: Recovery of the reduced solution yielded a sorbitol syrup with a pyridine number of 83. Please help thank you.
Principle of financial management of a multi-hospital system : What are the principles of financial management of a multi-hospital system? How are these different from the financial management of a stand-alone hospital?
By how much will quantity of federal funds have to change : Suppose that the demand for Federal funds curve is such that the quantity of funds demanded changes by $160billion for each 1 percent change in the Federal funds interest rate. Also, assume that the current Federal funds rate is at the 3 percent r..
Wrtie a recursive boolean function named ismember : wrtie a recursive boolean function named isMember that accepts two arguments: an array and a value. Teh function shourld return true if the value is found in the array, or false if the value is not found in the array.
Design a program that asks for the price of each item : Design a program that asks for the price of each item, and then displays the subtotal of the sale, the amount of the sales tax and the total.
What would have benefitted from increased competition : name a good or service that you have purchased in recent months from a monopolist. How did the monopoly come to exist Do you think you would have benefitted from increased competition in the market for this good or service
Advantages and disadvantages from a crm : Discuss the major advantages and disadvantages from a CRM perspective of the following types of organization structure - functional, geographic, product (brand or category), market (customer) and matrix.

Reviews

Write a Review

Econometrics Questions & Answers

  How you would select a random sample of three regular motels

Suppose the last five motels are "cut-rate" motels. Describe how you would select a random sample of three regular motels and two cut-rate motels. Three can be chosen from the first 20 motels in how many ways

  At what price and quantity will cartel maximize its profit

There are only two firms in the widget industry. The total demand for widgets is Q = 30 - 2P. The two firms have identical cost functions, TC = 3 + 10Q. The two firms act as though they were a monopoly. At what price and quantity will this cartel ..

  Calculate the interest rate necessary to create cash flow

A geometrically increasing series of 20 end of year payments is deposited to fund an account. The first payment is $20,000, the geometric factor is 4%. The account is used for retirement purposes and will produce 30 consecutive annual payments of ..

  Calculate the intercept in each of the four quarters

Consider a firm subject to quarter-to-quarter variation in its sales. Suppose that the following equation was estimated using quarterly data for the period 2006-2013 (the time variable goes from 1 to 32). The variables D1, D2 and D3 are , respecti..

  Determine how often does tracy go to the atm

Solve Tracy's problem of how often to go to the ATM when nominal interest rate on her bank account is 10%, she spends $30 each day, it cost her $0.50 each time she uses the atm, and she thinks that there is a 15% chance.

  Determine the amount of each of the four interest payments

Emerson Processing borrowed $900,000 for installing energy-efficient lighting and safety equipment in its La Grange manufacturing facility. The terms of the loan were such that the company could pay interest only at the end of each year.

  What are initial levels of real gdp and labor productivity

In the economy of Cape Despair, the subsistence real wage rate is $15 an hour. Whenever real GDP per hour rises above $15, the population grows, and whenever real GDP per hour of labor falls below this level, the population falls.

  Explain the trade liberalization

Suppose there are 2 countries, Home and Foreign, two factors of production, capital and labor and two products, food and cloth. Home has 100 units of labor and 200 units of capital, while Foreign has 300 units of labor and 150 units of capital. \(..

  Determine the approximate percentage change in output

consider the following cobb-douglas production function for the bus transportation system in a particular city: Q = aL(B1)F(B2)K(B3) where L = labor input in worker hours F = fuel input in gallons K = capital input in munber of buses Q = output me..

  Calculate the price index for two thousand

price information for a typical market basket of goods purchased by consumers and assume that 2000 is the base year:1.Calculate the price index for 2000. 2.Calculate the price index for 2001. 3.Calculate the price index for 2002. 4.Calculate the pric..

  What life span represents the 95th percentile

A consumer advocate group has contacted us about a new line of fluorescent light bulbs manufactured by Bright Ideas, Inc. The company claims their new bulbs have an average lifespan of at least 10,000 hours with a standard deviation of 1,700 hours.

  How long will take mexicos real gdp per person to reach uss

Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $12,000 per person, while it was about $48,000 per person in the United States. If real GDP per person in Mexico grows at the rate of 10 percent p..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd