Federal Fund Rates

Federal Fund Rates
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  • Bill: Time to go to work at the Fed! 
  • The Federal Reserve
  • Bill: I wonder if I can make interest rates higher today?
  • Unemployment Rates=5% Inflation Rates=1.5% Reserve Rates=4%
  • Bill: Maybe I can make interest rates go up by increasing the inflation rates.
  • Unemployment Rates=10% Inflation Rates=5% Reserve Rate=3%
  • Bill: Opps, i made it so interest decreases but inflation rates are normal, i think.
  • BOSS: MEETING IN THE CONFERENCE ROOM EVERY ONE!!!!
  • Bill's thought: HOLY MEATBALL WHAT AM I GOING TO DO!!!
  • BOSS: I have called this meeting because someone messed up. They raised the inflation rates without recording them causing a miss calculation! FIX THIS MESS OR ALL OF YOU WILL BE OUT OF JOBS!!
  • Unemployment Rates=10% Inflation Rates=5% Reserve Rates=???
  • Pam: Yeah, just buy bonds, it will decrease inflation as well as decrease unemployment
  • Bill: Hey Pam, do you know how to fix this?
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