Distinguish between the federal funds rate and the prime, Econometrics

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Distinguish between the federal funds rate and the prime

1. What is the basic objective of monetary policy? What are the major strengths of monetary policy? Why is monetary policy easier to conduct than fiscal policy in a highly divided national political environment?

2. Distinguish between the Federal funds rate and the prime interest rate. Why is one higher than the other? Why do changes in the two rates closely track one another?

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Econometrics: Distinguish between the federal funds rate and the prime

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