Question

Suppose the Federal Reserve's discount rate is 4 percent. This afternoon, the Federal Reserve Board announces that it is approving the request of several of its Reserve Banks to raise their discount rates to 4.5 percent. What is likely to happen to other interest rates tomorrow morning? Carefully explain the reasoning behind your answer.



$1.99
Sales0
Views64
Comments0
  • CreatedOctober 31, 2014
  • Files Included
Post your question
5000