What is the name of the fed target rate

Assignment Help Microeconomics
Reference no: EM131023055

In 2013, one article in the Wall Street Journal noted that: "The Fed's Board of Governors kept the discount rate unchanged at 0.75%," while another article predicted that: "The Fed can be expected to state again that the target rate won't change until mid-2015."

a. What is the name of the Fed's "target rate"?

b. Briefly explain who borrows money and who lends money at this "target interest rate."

c. What is the discount rate, and how is it different from the "target rate"?

Reference no: EM131023055

Questions Cloud

What is the term for a falling price level : The article also stated that Japanese Prime Minister Shinzo Abe was pressuring the Bank of Japan, the Japanese central bank, to take steps to hit an inflation target of 2 percent. Why would the Japanese government consider a falling price level to..
Employment in the local labour market : Prepare a report setting out recommendations for how the production line closure will be actioned. You need to give consideration to issues such as the potential of conflict and resistance from the workforce and wider stakeholders
Health care sector of the economy : Think about the relationship between economic prosperity and life expectancy. What implications does this relationship have for the size of the health care sector of the economy? In particular, is this sector of the U.S. economy likely to expand o..
Which year is used as the base year in calculating real gdp : According to the table above, which year is used as the base year in calculating real GDP? Why? Using the formula for the GDP deflator given in class, calculate the GDP deflator for the last ten years and fill out the column labeled GDP deflator1
What is the name of the fed target rate : In 2013, one article in the Wall Street Journal noted that: "The Fed's Board of Governors kept the discount rate unchanged at 0.75%," while another article predicted that: "The Fed can be expected to state again that the target rate won't change u..
Show how stages correlate names given to different stages : Research online Stages of Faith explain briefly and compare by way of a chart* the stages of faith development. Chart: show how stages correlate, names given to different stages according to both authors, describe stages.
What do economists mean by the demand for money : What do economists mean by the demand for money? What is the advantage of holding money? What is the disadvantage? Why does an increase in the interest rate decrease the quantity of money demanded?
Write a reaction papers about the given article : Write a Reaction Papers about the article "Influence and Adjustment Goals: Sources of Cultural Differences in Ideal Affect".
Real gdp and the standard of living : A question in an earlier chapter asked about the relationship between real GDP and the standard of living in a country. Based on what you read about economic growth in this chapter, elaborate on the importance of growth in GDP, particularly real G..

Reviews

Write a Review

Microeconomics Questions & Answers

  What course of action maximizes its expected profit

Suppose instead that firm B can postpone its R&D decision for six months, by which time it will have learned the court's ruling on its patent. What is its expected profit if it waits? Depending on the court outcome, what actions should it take?

  What has been the general behavior of the u.s. dollar

Plot these exchange rates against time and comment on the general behavior of the exchange rates over the given time period.

  Difference-total variable costs-average variable cost

Determine the difference between Total Variable Costs (TVC), Average Variable Costs (AVC) and Marginal Costs (MC).

  Summary of endogenous and exogenous growth theories

Developing a brief summary of endogenous and exogenous growth theories - Analyzing the impact of government policy on the long-term growth rate of an economy.

  1most people are concerned that wages determined in the

1.most people are concerned that wages determined in the labor market are unfair2.most people typically earn the bulk

  How has the volume of purchases changed over past five years

Look at recent net purchases of long-term securities. How has the volume of purchases changed over the past five years? Now look at gross purchases of long-term securities. Which countries hold the most U.S. securities? How have foreign holdings of U..

  What are the long-run implications on price level and gdp?

Is there any difference between the two approaches of the Keynesian theory and the new Keynesian theory in terms of short-run implications? What are the long-run implications on price level and GDP?

  Concepts of marginal costs and marginal revenues

Using the ideas of marginal costs and marginal revenues, describe why economic profits are maximized where marginal revenue equals marginal cost and why profits decline if price is above or below the profit maximizing price.

  How large is the private saving-public and national saving

How large is the private saving, public saving, and national saving, respectively? How large is the net foreign investment? Is country M a lender or borrower? If country M adopts a fixed exchange rate system, what kind of exchange pressure does its m..

  When gdp is high or increases does it indicate higher income

When GDP is high or increases does it indicate higher income If so when GDP per capita increases why do saving ratios decrease when savings is income induced ie a rise in income increases savings and a decrease in income decreases savings

  Has trade been created as a result of the customs union

What will be the price of a wristwatch to U.S. consumers if it is imported from Canada - What will be the price of a wristwatch in the U.S. in autarky - Canada and Switzerland. We can buy the same wristwatch from Canada for $30 and from Switzerland ..

  Create scatter plot and insert regression line and equation

the data are real us gross domestic product in billions of dollars and domestic revenue passenger miles in millions

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