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QUESTION
Explain how the Federal Fund Market works. How do the relationships between the federal fund rate and the discount rate affect the supply of federal
- Explain how the Federal Fund Market works. How do the relationships between the federal fund rate and the discount rate affect the supply of federal fund?
- Explain the concept of duration and convexity. How might one derive them? What are the various tables in the book showing about these concepts?
- Illustrate the impact the Financial Crises may have on income and employment in the US economy. Use the aggregate demand and supply curves, and trenching of risk of securities to illustrate your answer.
