How might forecasts of a falling general price level

Reference no: EM133771079

Case: n this week's discussion we will focus on how the US government increased spending to try to help the economy and its citizens by Congress passing an emergency aid package, the CARES act. Please listen to episode 411 from Freakonomics radio and use at least one additional research source to talk about recessions and the role of government in times of crisis.

Start by explaining what a recession is and why a global pandemic might have an adverse effect on the economy (think about how the pandemic affects the different components of GDP). Explain what the CARES act is. What is the most unusual feature of the CARES act and which of its two parts do you think is most beneficial? Talk about the best and worst parts of the CARES act. Where did the money come from (how was it financed) and do you think inflation should be a major concern? In your opinion, how efficient do you think the CARES act is in fighting a recession? What is the most interesting/important lesson you have learned from listening to this podcast?

Week 5

To get started, please click on the link to the News Analysis below and read the article. After getting the background information in step 1, you will learn how to calculate the yield for a series of T-bills in step 2. Step 3 includes 3 discussion questions which you will answer in an original post (your answer should be between 200 and 300 words). The 3 questions you should address in your original post are the following:

Question 1. The Lehman Brothers bankruptcy, the AIG bailout, and the mortgage crisis apparently shook investor confidence in financial institutions. Do you think their fears were justified? Do you believe that these financial events had an impact on your life? If yes, how, and if not, then why not?

Question 2. What are some similarities between the 1986-1995 savings and loan crisis and the mortgage crisis of 2008? Describe some differences between the two crises. What do you think could have been done to moderate the impact of each crisis?

Question 3. How might forecasts of a falling general price level in the months following September 2008 help to explain investors' willingness to purchase T-bills with negative nominal yields?

Reference no: EM133771079

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