Title:           Federal funds rate
Author:          Chrfrhr
Pastebin link:   http://pastebin.com/R4hc2P1n
First Edit:      Monday 20th of June 2016 10:13:14 PM CDT
Last Edit:       Monday 20th of June 2016 10:13:14 PM CDT

Federal government fights Recession
-FOMC lowers the target federal funds rate
-NYF buys securities
-bank reserves/money supply increases
-interest rate falls,
-quantity of money demanded increases
-increase in supply of loanable funds
-long term real interest rate goes down
-investment increases
-aggregate demand increases
 
Fighting Inflation
-Fed raises federal funds rate
-NYF sells securities
-bank reserves/money supply decrease
-quantity of money demanded decreases
-decrease in supply of loanable funds
-long term real interest rate goes up
-investment decreases
-aggregate demand decreases