Could raising the federal fund rate rise employment in the, Ask an Expert

Economics

Analyzing the impact of federal funds rate on level of employment.

The Federal Reserve chairman always looks at the employment number before altering the federal funds rate. Raising the federal funds rate is equivalent to raising the price of capital.

a) Could raising the federal fund rate increase employment in the long run? describe.

b) What effect would raising the federal fund rate have on employment in the short run?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M917931

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