ECON304 - Assignment06 - F10

ECON304 - Assignment06 - F10 - r Sonoma State University...

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r: Sonoma State University Department of Economics ECONOMICS 304 Florence Bouvet Assignment 6 Due Date: December 9 th at the beginning of lecture On November 3 n t, the Federal Reserve decided to maintain the target range for the federal funds rate at 0 to 1/4 percent and to increase liquidity in the economy by buying $600 billion in long-term Treasury bills. On pages 2 and 3 below, I have reproduced the statement published by the Federal Reserve after its recent FOMC meeting. Write and type a sbort essay (around 300 words, double spaced, 11 pt font) arguing whether you think tbe Federal Reserve made the right decision. The objective is to apply the analytical tools we have learned in this class to a current policy issue (especially IS-LM, AS- AD models), and to appreciate the difficulties of policy making. You are required to use and cite at least two sources from the list below. (Hint: look for articles in recent issues close to the November 3 n1 date ofthe Fed's decision). Here
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