Ask Question, Ask an Expert


Ask Microeconomics Expert

At the same meeting of the open market committee where it announced Quantitative Easing 3, the Fed chose to also announce that its currently low Fed funds rate of 0 to .25% would be maintained until at least the middle of 2015. Previously it had merely said that it would keep that rate low until early 2014.

Why would changing investors' expectations that the Fed would keep the overnight Fed Funds rate at its current low level for at least 18 months longer than previously promised be helpful to the Fed at this time. (hint...think about shape of the Treasury yield curve)

describe your answer in a paragraph.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M938836

Have any Question? 

Related Questions in Microeconomics

Principles of economics1 which statement is truea today

Principles of Economics 1. Which statement is true? A) Today more workers in the U.S. are members of labor unions than any time in our history. B) Today labor unions are weaker than any time in the last 100 years. C) No ...

Problem 1 -an economic forecasting organization has

PROBLEM 1 - An economic forecasting organization has developed a model they feel will help them better predict the market conditions than just overall sentiment.  Their proprietary model yields either Positive or Negativ ...

Economics problem set-question 1 sometimes goods are

Economics Problem Set- QUESTION 1: Sometimes goods are rationed, so people cannot buy as much as they want at the announced price. A good example is Super bowl tickets, which are sold at below market price. Suppose that ...

Assignmentcreate a powerpoint presentation of no more than

Assignment Create a PowerPoint presentation of no more than nine slides (excluding title and reference slides) that provides synthesis of specific elements using the research article provided in this unit's Studies, "The ...

Httpswwwyoutubecomwatchvhblevnwyg8what was the promise of What was the promise of capitalism? Discuss the important milestones and historical developments in economic theory and specify the contributions of each of the profits.

Part awe have discussed several examples of constrained

Part A: We have discussed several examples of constrained utility maximisation in lectures and in classes. For example, we have learned how to find the optimal bundle of goods consumed by an individual trying to maximise ...

Assignmentdfds are process diagrams that emphasize the data

Assignment DFDs are process diagrams that emphasize the data consumed, produced, and stored by processes under discussion. Complex processes are decomposed into their constituent elements to reveal the most elemental sub ...

Assessmentanswer all questions each is worth 15 marks for

ASSESSMENT: Answer all questions, each is worth 1.5 marks. For detailed assessment criteria see the subject guide, which also explains that the assessment looks at the quality of your answers, not the quantity. You can b ...

1 firms that had virtual monopolies that is control over at

1. Firms that had virtual monopolies, that is control over at least 80% of industry production, because of control over an essential resource include all of the following except the A) National Football League in the 195 ...

Milestone guidelinesthe purpose of this milestone is for

Milestone Guidelines The purpose of this milestone is for students to explore the various costs their firm faces and to describe their firm's market. Using the concepts and tools developed in Modules Four and Five, stude ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate