Essentials of Economics 2nd Edition by Campbell McConnell, Randy Grant, Stanley Brue

تمرين 9

Distinguish between the Federal funds rate and the prime interest rate. Which of these two rates does the Fed explicitly target in undertaking its monetary policy In 2004 and 2005 the Fed used open-market operations to significantly increase the Federal funds rate. What was the logic of those actions What was the effect on the prime interest rate