How does this very short-term nominal interest rate, used only betweenbanks, have the power to shake fnancial markets, alter medium-term investmentplans, and change GDP in the largest economy in the world?

How does this very short-term nominal interest rate, used only betweenbanks, have the power to shake fnancial markets, alter medium-term investmentplans, and change GDP in the largest economy in the world?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: An Introduction To Basic Macroeconomic Markets

Section: Chapter Questions

Problem 13CQ

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Question

How does this very short-term nominal interest rate, used only between
banks, have the power to shake fnancial markets, alter medium-term investment
plans, and change GDP in the largest economy in the world?

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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