Federal funds and discount rate

Reference no: EM1373683

GDP growth is approximately 1.5 percent and has been at that level for two years.
Inflation, as measured by both the CPI and GDP deflator has been at approximately 1-2 percent for the last two years.
Unemployment has recently moved to 7.3 percent, up from 7 percent one year ago, and 6.5 percent two years ago.
The Federal Funds rate is 3.5 percent, and the Discount rate is 3.25 percent.
The Government budget has been operating at a deficit of approximately $60 billion for the last year, up from $50 billion the previous year.

Reference no: EM1373683

Questions Cloud

Strategic consulting in practice : imagine that you are a team employed by a major UK Management Consultancy organisation. Your boss in the Consultancy has agreed that you will carry out a small piece of unpaid work for a client, with the aim of demonstrating the Consultancy's com..

Democratic political system : When all people use economic reasoning, incompetence is impossible, because if the profit of decreasing that inefficiency were greater than the expenses, the inefficiency would be eliminated.

Provide examples of the automatic stabilizers : Analyze the contribution that automatic stabilizers play in making a stable economy. Provide some examples of the automatic stabilizers and use them to illustrate their significance.

Misleading characteristic of unemployment rate : The unemployment rate is a deceptive indicator of the current and future state of the economy. How does the timing of lay off and hiring decisions made by companies describe the misleading characteristic of this indicator?

Federal funds and discount rate : GDP growth is approximately 1.5 percent and has been at that level for two years. Inflation, as measured by both the CPI and GDP deflator has been at approximately 1-2 percent for the last two years.

Federal deficit affect gdp and the multiplier : To decrease the federal deficit, government would have to cut back on government buy, transfer payments, or increase taxes. How does the federal deficit affect GDP and multiplier?

Computing the real gdp and value of price index : Use the following information to answer the questions. Compute real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow?

Economic trends in the data sets : As an worker of the World Bank you have been asked to research the requires of two nations with a particular concern. I have selected Mexico and Argentina.

Explain the macro economic implications : Take a look at the Productivity Growth Rate over the past twenty years and over last five years, and describe the macro economic implications such as Potential GDP, GDP growth and inflation,

User Account

All Pages