What would you expect to happen to the rate of growth

Reference no: EM132126447

Question: Suppose that the Federal funds rate rose from 3% to 6% during the year. What would you expect to happen to the rate of growth in real consumption, and in the consumption/income ratio, under the following circumstances?

(A) The corporate bond rate rose from 6% to 9%.

(B) The corporate bond rate remained unchanged at 6%.

(D) The stock market was unchanged.

(E) The unemployment rate rose from 5% to 6%.

(F) The unemployment rate was unchanged.

Reference no: EM132126447

Questions Cloud

Participate in the free-throw challenge for one game : What is your expected winnings when you participate in the free-throw challenge for one game?

What factors accounted for the divergence : During the 1990s, the age cohort that grew the most rapidly was the 45-54 cohort, which has the highest saving rate. Yet during that same period.

Confidence interval for the population proportion : Construct a? 99% confidence interval for the population proportion. Interpret the results.

What is the probability that the hotel receives at least one : What is the probability that the hotel receives at least one of the defective sets?

What would you expect to happen to the rate of growth : Suppose that the Federal funds rate rose from 3% to 6% during the year. What would you expect to happen to the rate of growth in real consumption.

Complete on service and price : Couriers such as UPS and FedEx complete on service and price. One way to reduce cost is to keep labor cost low by hiring and laying off workers to meet

What do you think would happen to total consumption : Suppose the government decided to levy the current 15.3% social security tax on all levels of wages and salaries, not just the first $80,000.

Is it sufficient to adequately address future challenges : How would you assess the current model of shared responsibility between the government security and private sectors?

How would the changes affect current consumption plans : According to legislation as of late 2002, the death tax (estate tax) is supposed to be fully phased out by the year 2010, but then reinstated at a maximum.

User Account

All Pages