Answer: 0.75% and 37.5%
Explanation:
Given that,
Fed raise the target for the federal funds rate = 2% to 2.75%
Federal fund rate is the interest rate that is charged by the fed from other banks for lending an amount on an overnight basis.
Therefore, there is a change of 0.75% points.
This means that fed raised its target by,
= [tex]\frac{0.75}{2} \times100[/tex]
= [tex]\frac{75}{2}[/tex]
= 37.5%
Therefore, option (C) is correct.
