dollar, on track for lowest close since late May” was the title of a WSJ article on July 16, 2015:
(Ramage, James. Wall Street Journal, July 16, 2015. Retrieved from http://www.wsj.com)
Explain how the Greece Bailout has caused the euro to weaken against the dollar. Use the foreign exchange market graphs to demonstrate.
- “Mortgage Crises Spread Past Subprime Loans” was a title of a NYTimes article on February 12, 2008.
(Source: Vikas and Louise Story. “Mortgage Crises Spread Past Subprime Loans.” NYTimes, February 12, 2008. Retrieved from: http://www.nytimes.com)
What type of macroeconomic shock does the article represent? Use the macro picture to show the effect on real GDP, the price level, and unemployment. Explain!
- Show graphically and explain how non-interventionist believe the economy will self-correct in times of demand-deficient unemployment.
- The following excerpt is taken from a NYTimes article:
“ The Federal Reserve entered a new era on Tuesday, lowering its benchmark interest rate virtually to zero and declaring that it would now fight the recession by pumping out vast amounts of money….”
(Source: Andrews, Edmund L. and Jackie Calmes. “Fed Cuts Key Rate to Record Lows,” NYTimes, December 16, 2008. Retrieved from: www.nytimes.com.)
- What is the Fed’s “benchmark interest rate”?
- Discuss how the Fed’s action in the article will affect r, I, Y and P. Use appropriate graphs to demonstrate.
