Discount rate and the federal fund rate

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Giving a brief explanation, determine the likely effect of each of the following on the value of GM stock.(Consider each event independent of the others.) a. The Federal Reserve lowers both the "discount" rate and the Federal Fund rate. b. The rising unemployment rate signals a slow-down in the economy. c. The value of the US dollar has significantly gone up against most currencies, making American products more expensive to foreigners while making imports cost less to American consumers. d. The United States signs a free trade agreement with European Union. e. Ford Company reaches an agreement with the auto workers union. f. It has been reported that there are signs that the European recessions is coming to an end.

Reference no: EM131000520

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