Why doesnt fed seek to reduce the unemployment rate to zero

Assignment Help Financial Management
Reference no: EM131303083

1. Which type of unemployment-frictional, structural, or cyclical-does the Federal Reserve seek to reduce? Why doesn't the Fed seek to reduce the unemployment rate to zero?

2. Why do fluctuations in interest rates make investment decisions by households and firms more difficult?

Reference no: EM131303083

Questions Cloud

Describe vision for career : In 750-1,000-words describe your vision for your career once you have completed your master's degree. In your discussion, address the impact completing this degree will have on meeting the greater social good in your industry and within the commun..
Expalin major complexities that would arise under expansion : Examine the major complexities that would arise under expansion via capital projects. Propose key actions that the company could take in order to prevent or address these complexities.
Overview of your target position and industry : UNIV B201 Career Management Development Plan Instructions. You will write a two paragraph overview of your target position and industry. This information will include employment outlooks and projections, required education and licensure, and averag..
What is loss prevention and what are its elements : What is loss prevention and what are its elements? Elaborate in less than 500 words. How loss prevention is relevant to HFE? Elaborate and give examples in less than 500 words.
Why doesnt fed seek to reduce the unemployment rate to zero : Which type of unemployment-frictional, structural, or cyclical-does the Federal Reserve seek to reduce? Why doesn't the Fed seek to reduce the unemployment rate to zero?
Health care approach patient confidentiality : Explain how HIPPA affects the way workers in health care approach patient confidentiality.
Explain which goal you think should have the top priority : Why would excess fluctuations in the foreign exchange value of the dollar make planning for business and financial transactions more difficult?
What would be the cost of producing more guns : What would be the cost of more butter, if the economy is at point C? What would be the cost of producing more guns? How does the shape of the production possibilities curve reflect the law of increasing opportunity costs?
Role of culture when motivating employees : Consider the role of culture when motivating employees. Describe some differences that can gain employee trust in at least three countries. Each country should be located on a different continent.

Reviews

Write a Review

Financial Management Questions & Answers

  Mortgage loan-what is the monthly payment

A mortgage loan is made for $225,000. The term of the loan is 30 years with monthly payments. The interest rate is %5. What is the monthly payment? What would the loan balance be after 10 years?

  What is the value of quick ratio

Clyde’s Smoke Shop has cash of $750, accounts receivable of $150, inventory of $300, and accounts payable of $600. What is the value of Clyde’s quick ratio?

  Corporation after all corresponding taxes are paid

Consider a S corporation. The corporation earns $5 per share before taxes. The corporate tax rate is 40%, the tax rate on dividend income is 28%, and the personal income tax rate is set at 28%. What are the shareholder's earnings from the corporation..

  Compute the return on stockholders equity

Pacific Fixtures lists the following accounts as part of its balance sheet. Compute the return on stockholders’ equity if the company has sales of $20 million and the following net profit margin:

  What is the standard deviation of the portfolio

A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 40% and 30%, respectively, and the correlation between IBM and MSFT is -0.3. What is the standard deviation of the portfolio?

  Growth rate indefinitely

Could I Industries just paid a dividend of $1.30 per share. The dividends are expected to grow at a 15 percent rate for the next 5 years and then level off to a 6 percent growth rate indefinitely. If the required return is 12 percent, what is the val..

  Bid for each share of vandell common stock in an acquisition

Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt. Vandell's debt interest rate is 7.3%. Assume that the risk-free rate of interest is 4..

  Firm is evaluating two projects

A firm is evaluating two projects X and Z. Project X has an initial investment of $80,000 and cash inflows at the end of each of the next five years of $25,000. Project Z has a initial investment of $120,000 and cash inflows at the end of each of the..

  Estimate the current value of the stock

Bruce Jenner is the portfolio manager of a Los Angeles-based equity fund. He is analyzing the value of TJX, Inc. (NASDAQ Stock Exchange: TJX). TJX is a leading retailer of women’s clothing in the US. Jenner has concluded that the DDM is appropriate t..

  Grow by maintaining a constant mix of debt and equity

The estimate of how quickly a firm may grow by maintaining a constant mix of debt and equity is called:

  Label the capital market line

Stock X has an expected return of 12% and a standard deviation of 8%. Stock Y has an expected return of 8% and a standard deviation of 5%. The correlation coefficient between the returns for X and Y is 0.2. Supposing these are the only 3 assets in th..

  The additional paid-in surplus account

The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,420,000, $144,000 in the common stock account and $2,690,000 in the additional paid-in surplus account. The December 31, 2014, balance sheet showed long-term debt of $1..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd