Explain central bank sua or lower the federal funds rate


Suppose the Free Zone (the site presented in the problem 6), the aggregate supply curve is short term OAC and potential GDP increases 350 000 million.

a-what would happen if the Free Zone in central bank lowered the federal funds rate and buy securities on the open market?
b-recommends that the central bank sua or lower the federal funds rate? why?
c-Recommends that the central bank will raise or lower the federal funds rate? Why?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Explain central bank sua or lower the federal funds rate
Reference No:- TGS038258

Expected delivery within 24 Hours