ECON202 - Lecture 7

ECON202 - Lecture 7 - ECON202 Class Notes April 15, 2008...

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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
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