ECON202 - Lecture 7

ECON202 - Lecture 7 - ECON202 Class Notes Lecture 7 1...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON202 Class Notes April 15, 2008 Lecture 7 1) Fisher Effect a) i=r+π i) π=inflation ii) i=nominal interest rate iii) r=real interest rate (1) effects personal purchasing power 2) Feds set target for federal funds rate a) The rate that banks borrow from eachother b) Do this by buying and selling bonds
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Ask a homework question - tutors are online