Discuss how doing so would raise the federal funds rate


The Federal Reserve took money out of banking system to raise federal funds rate-the rate at which banks lend each other money overnight-from the 4 percent to 4.5 percent.

1. Discuss how does the Fed take money out of the banking system?

2. Discuss how doing so would raise the federal funds rate.

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Macroeconomics: Discuss how doing so would raise the federal funds rate
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