What are the consequences for interest rates

Assignment Help Financial Management

Reference no: EM131572774

The U.S. Federal government has been running deficits in the hundreds of billions of dollars which means that the U.S. Treasury is issuing hundreds of billions of dollars in new Treasury securities. If this is all you consider, what are the consequences for interest rates, spending financed by private borrowing, the money supply, the bond supply and inflation from this action alone? While the U.S. has been running these massive deficits, what has been true about interest rates? How do you explain this contradiction in interest rate effects and what are the big concerns going forward?

Reference no: EM131572774

Questions Cloud

What is the amount of the firm ebit : What is the amount of the firm's EBIT?

How much should stock price change : Consider a firm that had been priced using an 11.5 percent growth rate and a 13.5 percent required return. How much should the stock price change.

The p-e ratio remained unchanged : what would be the stock price in four years if the P/E ratio remained unchanged? What would the price be if the P/E ratio increased to 22 in four years?

Compute value of this stock with required return : Compute the value of this stock with a required return of 12.9 percent.

What are the consequences for interest rates : what are the consequences for interest rates, spending financed by private borrowing, the money supply, the bond supply and inflation from this action alone?

What is the one year forward exchange rate : The annual one-year interest rates are 4% in Euros and 5% in USD. What is the 1 year forward exchange rate?

Earnings growth comes from investment of retained earnings : Assume Halliford's share count remains constant and all earnings growth comes from the investment of retained earnings.

What is the present value of the cash? flows : If 14 percent is the discount? rate, what is the present value of the cash? flows?

Ethical issues in business-preliminary research table : refer to the "Ethical Issues in Business: Preliminary Research Table".Crisis Details: Summarize the ethical crisis details. What stakeholders were involved?

User Account

All Pages