Interest Rate on Reserves = 0.25% Discount Rate = 1.50% Federal Funds Rate = 1.50% Required...

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Economics

Interest Rate on Reserves = 0.25% Discount Rate = 1.50% Federal Funds Rate = 1.50% Required Reserve Rate = 10% Unemployment Rate = 5.0% Inflation Rate = 2.1% Consider the federal funds market. If the borrowing curve in this market shifts right by $100 billion (and nothing else change), what will happen to the FFR? Question 2 options: a. The FFR will increase b. The FFR will decrease c. The FFR will stay the same d. The FFR will increase or stay the same e. The FFR will decrease or stay the same

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