Ch 3 - Internet Exercise

Ch 3 - Internet Exercise - Briefly, what was the...

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FIN 2976 – Chapter 3 Internet Exercise The Federal Reserve Board Web site contains valuable information and useful links to other Web sites. The following questions can be answered by going to the Federal Reserve Board’s Web site ( http://www.federalreserve.gov ). First, go to the Federal Reserve Board’s Web site, click on the monetary policy link and then the Federal Open Market Committee link. Answer the questions in the table below, and send back to me via the assignment manager. Date of the Most Recent FOMC Meeting: April 29, 2009 Read the “Statement” issued after the meeting. What did the FOMC decide concerning the target fed funds rate? The committee will maintain a target range of 0 to 1/4 percent.
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Unformatted text preview: Briefly, what was the justification for that decision? (Do not plagiarize.) Though at a slower rate, the economy has continued to contract. Spending remains low, unemployment is still high, and housing prices are still declining. Both domestic and international markets remain weak. As a result, the threat of inflation reamains low. The committee has set a target rate at 0 to .25 percent and expects to keep rates low for an extended period of time. Their justification is that the low rate, along with other measures, will help stablize prices and make for a healthier recovery through the recession....
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