For all numerical answers, just type in the number - no $ signs, no commas, no words. Thanks! Suppose you are the manager the trading desk back when the fed was in the old system of targeting the federal funds rate. It is morning and your staff estimates reserve demand to be Rd = 100 - 5 if and the target for the funds rate is 4% (use 4 in calculations) assuming you have perfect control over the amount reserves in the system (reserve supply). How many reserves are needed to hit the target established by the FOMC? Billion Scenario #1 The next morning, your staff realizes that a shock occurred overnight and they now estimate reserve demand to be: Rd = 120 - 5 if and the target for the funds rate is still 4% (use 4 in calculations) How many reserves are needed to hit the target established by the FOMC? 24 Billion

For all numerical answers, just type in the number - no $ signs, no commas, no words. Thanks! Suppose you are the manager the trading desk back when the fed was in the old system of targeting the federal funds rate. It is morning and your staff estimates reserve demand to be Rd = 100 - 5 if and the target for the funds rate is 4% (use 4 in calculations) assuming you have perfect control over the amount reserves in the system (reserve supply). How many reserves are needed to hit the target established by the FOMC? Billion Scenario #1 The next morning, your staff realizes that a shock occurred overnight and they now estimate reserve demand to be: Rd = 120 - 5 if and the target for the funds rate is still 4% (use 4 in calculations) How many reserves are needed to hit the target established by the FOMC? 24 Billion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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