ECONOMIC CONDITION

 

 

 

 

 

 

Economic Condition

 

 

 

 

 

 

 

 

 

Economic Condition

 

        One of the passages through which alterations in the Federal Funds rate sway economic undertaking seems to be the investment in residential building, a constituent of aggregate demand. Figure 5.b displays that it comprises about 4% of GDP. After the Fed begun to decrease its Federal capital rate in 2001, investment in residential building both in unconditional grade and as a percentage of GDP begun to increase whereas with a certain lag. Similarly, after the Fed begun to lift its Federal Funds rate in early 2005, investment in residential building begun to drop with a certain lag ...