question archive ExplainhowanappreciationoftheUS$canbeexpectedtoimpacteconomic growth, interest rates and the stock market in the US
Subject:EconomicsPrice: Bought3
ExplainhowanappreciationoftheUS$canbeexpectedtoimpacteconomic
growth, interest rates and the stock market in the US.
-Assumethatthestockmarketbeginsaperiodofsustainedincreasesaftera pause. Outline an options strategy that would help someone benefit from this improvement in the stock market and how this should work.
-Duringthepandemiccrisis,thefederalgovernmentsentoutchecksforahostof programs. An administrator for one of these programs commented: "These tax checks should help keep interest rates low or help them decline even further from their current levels." Critically evaluate this statement (i.e., true, false, and why).
-Firmsuselong-terminterestrateswhenmakinginvestmentdecisions(for equipment, software and structures). When the Fed lowers its fed funds rate target (in more normal times), can this affect these investment decisions? Briefly explain your answer.