Do you think raising interest rates at this time makes sense

Assignment Help Business Economics
Reference no: EM131242502

The Fed has since ended its quantitative easing policy and has stuck with leaving interest rates at 0%. For the past 6 months the Fed has been toying with the idea of gradually increasing the rates. It has yet to do so even though many "Experts" have predicted that it would begin. Why do you think the Fed has resisted a rate hike? Do you think raising interest rates at this time makes sense?

Reference no: EM131242502

Questions Cloud

Human capital investments and physical capital investment : Why might funds be available on less favorable terms for human capital investments than for physical capital investments? Can you provide a rationale for the argument that public subsidies should diminish as students advance to higher and higher educ..
Strategy and planning for local economic development : Strategy and Planning for Local Economic Development. Choice of key primary Strategy - Human Resource Development, Business Development, or Community Economic Development. Integration of your primary strategy with other development strategies.
The demand for all medical care is perfectly inelastic : If a drop in the price of smartphones from $160 to $120 increases the quantity sold from 6,000,000 to 9,000,000 demand is price inelastic. In the presence of a positive externality, a competitive market produces too little of the good. Because life i..
Publisher and the analyst making about the price elasticity : In article of about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should rise its price from 50 cents to 75 cents, which he estimates would bring i..
Do you think raising interest rates at this time makes sense : The Fed has since ended its quantitative easing policy and has stuck with leaving interest rates at 0%. For the past 6 months the Fed has been toying with the idea of gradually increasing the rates. It has yet to do so even though many "Experts" have..
Circulation should drop sharply after a price : In article of about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should rise its price from 50 cents to 75 cents, which he estimates would bring i..
What is the equivalent uniform annual amount : A sum of money (S) will be received 10 years from now. Compounded at a 10% annual (or nominal) interest rate the Present Worth of this is $38.55. (a) What is S? (b) What would S be, if the money were compounded continuously? (c) What is the Equivalen..
Economics of scale-barriers created by the government : Of the following three barriers to entry - Economics of scale - barriers created by the government-   sunk cost. Explain how these barriers affect a company of your choice
Assuming that the elasticity of demand is constant : Katherine advertises to sell cookies for $4 a dozen. She sells 50 dozen, and decides that she can charge more. She raises the price to $6 a dozen and sells 40 dozen. What is the elasticity of demand? Assuming that the elasticity of demand is constant..

Reviews

Write a Review

Business Economics Questions & Answers

  Business owners who emphasize profit maximization

Some economists believe that business owners who emphasize profit maximization will hire the most productive workers regardless of the personal characteristics of the worker; hence, these firms will drive discriminating firms out of business.

  What effect cost have on strategic learning equilibrium

What effect would this have on the strategic learning equilibrium. In particular, might the incentives for strategic learning disappear?

  Q1 do protectionist policies benefit producers consumers

q1. do protectionist policies benefit producers consumers workers or the government? explain. explain how the buy

  Elucidate what other evidence could a manager look

Elucidate what other evidence could a manager look for to infer whether a market is in equilibrium. What are possible causes of the shortage.

  Rashid''s budget constraint

Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition.

  How are individuals impacted by the financial markets

How are individuals impacted by the financial markets? How does the financial markets impact economic growth? Venture capitalism and risks? How does healthy financial markets create jobs?

  Proviade two examples of actions taken by a company

Proviade two examples of actions taken by a company, government, or organization whose effect is to prevent specific markets from reaching equilibrium.

  Economy experienced a period of extremely low inflation

In the late 1990s, the U.S. economy experienced a period of extremely low inflation and extremely low unemployment. Use the AD/AS model to explain what sort of change in the economy would cause this. Include a graphical analysis in your answer, and p..

  Average cost is equal to marginal cost level of output

For commodity X, average cost is equal to marginal cost at every level of output. Assuming that the market for X is competitive and the demand curve is linear analyze the effects when a unit tax of u dollars is imposed. Now analyze the effects of the..

  Using an EUAC and a cash flow approach

Clear Water Company has a down-hole well auger that was purchased 3 years ago for $30,000. O&M costs are $13,000 per year. Alternative A is to the keep the existing auger. It has a current market value of $12,000 and it will have a $0 salvage value a..

  Part a a brawl in mickeys backyardread the discussion case

part a a brawl in mickeys backyardread the discussion case a brawl in mickeys backyard question 1 in a chart diagram or

  What is true of the marginal revenue function

plot the total, average, and marginal functions for both revenue and cost. [Note: Use a two-part graph similar to Figure 2.1 that places the total function in the upper part and the average and marginal functions in the lower half. What is true of th..

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