Imagine working at the trading desk at the new york fed, Ask an Expert

Economics

Imagine working at the Trading Desk at the New York Fed. Explain whether you would conduct open market purchases or sales in response to each of the following events. Justify your recommendation.

a. The latest FOMC Directive calls for an increase in the target value of the federal funds rate.

b. For a reason unrelated to monetary policy, the Fed's Board of Governors has decided to raise the differential between the discount rate and the federal funds rate. Nevertheless, the FOMC Directive calls for maintain the present federal funds rate target.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91342528

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