Notes on the Money Market and LM Curve – Eco 3202 – Fall ...

The federal funds market The fed funds rate and the discount rate are two of the tools the Federal Reserve uses to set U.S. monetary policy. ... let us suppose that the interest rate over the next ten years will be 10% year in and year out. In this case, given these assumptions, the PV of $1,000 ten years from now would be: ... What does $385 ... ................
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