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How central bank increases the target rate
Let's say that the central bank increases the target rate. When the target rate increases, the central bank needs to raise the overnight interest rate which may be accomplished by selling government securities. The central bank will then debit the commercial banks' central bank accounts and the banks will debit the accounts of the buyers of the securities. The reserves will now be too small, and this will create an upward pressure on the overnight interest rate. To create a long-term balance, banks will want to increase their deposits and reduce their lending. They can achieve this by raising bank interest rates.
After an oil price shock was impacted upon the other five variables in the model, many interesting results were found. I have already demonstrated that oil Granger causes i
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Can i have a guide on a particular macroeconomics assignment? I have totally no idea on how to start it. Please reply and i will show the question.
We will continue with the familiar demand curve homework the previous section Let the market demand for goods be with a linear curve: (p =A q D /10), where it is known
factor for long run trend of term of trade
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