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Business, 10.10.2019 18:30 mccdp55

Suppose the target range for the federal funds rate is 1.5 to 2 percent but that the equilibrium federal funds rate is currently 1.7 percent. assume that the equilibrium federal funds rate falls (rises) by 1 percent for each $150 billion in repo (reverse repo) bond transactions the fed undertakes. if the fed wishes to lower the equilibrium federal funds rate to the bottom end of the target range, will it repo or reverse repo bonds to non-bank financial firms?

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Suppose the target range for the federal funds rate is 1.5 to 2 percent but that the equilibrium fed...

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