The Federal Reserve exercises monetary policy by means of a very short-term, overnight nominal interest rate. Explain

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The Federal Reserve exercises monetary policy by means of a very short-term, overnight nominal interest rate. Explain how changes in this overnight nominal rate influence longer term real interest rates, and thus investment.

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Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

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Question Posted: Feb 25, 2016 06:32 AM

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The Federal Reserve exercises monetary policy by means of a very short-term, overnight nominal interest rate. Explain

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First the question of how a nominal rate impacts a real rate every nominal interest rate has a corre...View the full answer

Macroeconomics

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