User Account

All Pages

Prospect of a refinancing issue

Assignment Help Microeconomics
Reference no: EM132051580

One reason for raising interest rates was the prospect of a refinancing issue: a $12 billion issue matures April 1, and the government is expected to seek some new money, in excess of its refinancing needs.

  • Why doesn't the government get the central bank to wait until after the refinancing before increasing interest rates, so as to minimize its interest costs?

Reference no: EM132051580

Questions Cloud

Creation of the money supply reduce interest rates : a) How does stepping up the rate of creation of the money supply reduce interest rates?
What way is fiscal easing in japan relevant here : In what way is fiscal easing in Japan relevant here? In what way is monetary easing in Germany relevant here?
What is the blank explain reasoning : A trade deficit, he said, is not an indication that a country has low productivity or low-quality products. It is an indication that the domestic investment rat
Foreign investors in argentina new economic system : But this worry is wrongheaded because this deficit is the result of the confidence of foreign investors in Argentina's new economic system.
Prospect of a refinancing issue : One reason for raising interest rates was the prospect of a refinancing issue: a $12 billion issue matures April 1, and the government
Describe quantitative easing : What terminology would most economists use to describe "quantitative easing"? How is this supposed to induce banks to begin lending?
What does a more hawkish view of inflation mean : What does a "more hawkish view" of inflation mean? What implication does this have for the monetary policy we can expect to see from the Fed?
What is meant by a painful path : What is meant by a painful path? Why would letting inflation get away for only a while require a painful return?
Cyclical unemployment or the natural rate of unemployment : Is the main reason for this long-term difference in unemployment rates more likely to be cyclical unemployment or the natural rate of unemployment?

Reviews

Write a Review

Microeconomics Questions & Answers

  What interest rate would this be a fair deal

Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $33,000 per year forever.

  Determine the initial equilibrium wage and labor utilization

Assume a market is characterized by a unionized and a non unionized sector. Both sections initially have supply given through Q=10,000+25w, and demand by Q=20,000-10w, where w is weekly salary.

  Affect the output level so long as fed pegs interest rates

Money demand shocks will not affect the output level so long as the Fed pegs interest rates. True or false? Use an IS-LM diagram to explain your answer.

  What evidence might be bring to the hearing

Antitrust authorities at the Federal Trade Commission are reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of the two rival firms in the same market will increase market power.

  Pedo for the firm the major goal of profit sharing plans is

for the firm the major goal of profit sharing plans is to ltbrgtfor the firm the major goal of profit sharing plans is

  What is opportunity cost of investing in physical capital

What is the opportunity cost of investing in physical capital? Do you think a country can overinvest in physical capital? What is the opportunity cost of investing in human capital? Do you think a country can over-invest in human capital? Explain y..

  What interest rate would a firm have to promise debt

What interest rate would a firm have to promise debt holders to make an investor indifferent between holding debt or shares in the company? How does the return to equity owners change with the proportion of the investment that is provided by debt? Th..

  Describe the firms in the proposed merger

Explain whether the competitive environment in this industry benefits society or not. Is a high degree of market concentration a boon or threat to consumers?

  The cash flow of each is as suppose the risk of the project

Bob Davies must decide whether to invest $100,000 in his own business or in another local business. Both investment projects have an expected life of five years. The cash flow of each is as fSuppose the risk of the projects is the same and is acc..

  Describe briefly the form and stages of regional integration

Describe briefly the form and stages of regional integration. Explain the pros and cons of regional integration.

  A a group you must choose multinational corporation or

a major producer of plastics in the united states is about to expand its business. as part of this expansion it will

  Define expected real interest rate

What is the yield to maturity on a Treasury bill that matures one year from now, has a price of $1,010, and has a face value of $1,000? If the consumer price index is expected to decline during the year from 250 to 245, what is the expected real i..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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