Macroeconomics
Macroeconomics
5th Edition
ISBN: 9781319098759
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
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Chapter 15, Problem 1P
To determine

Concept Introduction:

Federal Funds Rate: The Federal fund rate affects the fiscal and the monetary policy of the U.S. The rate at which one bank lends to the other bank for short term basis is known as the Federal fund rate.

Answer:

a. Target Federal fund rate.

Target Federal fund rate is 1.5% on 13 December 2017.

b. Comparison of target Federal fund rate.

Target Federal fund rate differ by 0.25%.

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