4. In 2020, from Jan 29th to March 15th, (Select All that Apply) Helpful Hint: There are 6 correct answers. A. the cost to borrow money increased B. the cost to borrow money decreased C. the FED is responding to the economic consequences of Covid-19 D. the FED is responding to inflationary pressures E. the FED was trying to increase the money supply F. the FED was trying to decrease the money supply G. the FED was trying to engage in expansionary monetary policy H. the FED was trying to engage in contractionary monetary policy 1. the FED was trying to engage in expansionary fiscal policy J. the FED was trying to engage in contractionary fiscal policy K. the federal funds rate increased L. the federal funds rate decreased M. you would have been better off by getting a loan in January as opposed to March N. you would have been better off by getting a loan in March as opposed to January

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Please answer question 4:

January 29, 2020
"Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price
stability. The Committee decided to maintain the target range for the federal funds rate at 1-1/2 to 1-3/4
percent. The Committee judges that the current stance of monetary policy is appropriate to support
sustained expansion of economic activity, strong labor market conditions, and inflation returning to the
Committee's symmetric 2 percent objective. The Committee will continue to monitor the implications of
incoming information for the economic outlook, including global developments and muted inflation
pressures, as it assesses the appropriate path of the target range for the federal funds rate."
Source: Federal Reserve press release - January 29, 2020
March 3, 2020
"The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks
to economic activity. In light of these risks and in support of achieving its maximum employment and
price stability goals, the Federal Open Market Committee decided today to lower the target range for the
federal funds rate by 1/2 percentage point, to 1 to 1-1/4 percent. The Committee is closely monitoring
developments and their implications for the economic outlook and will use its tools and act as
appropriate to support the economy."
Source: Federal Reserve press release - March 3, 2020
March 15, 2020
"Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price
stability. The effects of the coronavirus will weigh on economic activity in the near term and pose risks to
the economic outlook. In light of these developments, the Committee decided to lower the target range
for the federal funds rate to 0 to 1/4 percent. The Committee expects to maintain this target range until it
is confident that the economy has weathered recent events and is on track to achieve its maximum
employment and price stability goals."
Source: Federal Reserve press release - March 15, 2020
4. In 2020, from Jan 29th to March 15th,
(Select All that Apply)
Helpful Hint: There are 6 correct answers.
A. the cost to borrow money increased
B. the cost to borrow money decreased
C. the FED is responding to the economic consequences of Covid-19
D. the FED is responding to inflationary pressures
E. the FED was trying to increase the money supply
F. the FED was trying to decrease the money supply
G. the FED was trying to engage in expansionary monetary policy
H. the FED was trying to engage in contractionary monetary policy
1. the FED was trying to engage in expansionary fiscal policy
J. the FED was trying to engage in contractionary fiscal policy
K. the federal funds rate increased
L. the federal funds rate decreased
M. you would have been better off by getting a loan in January as opposed to March
N. you would have been better off by getting a loan in March as opposed to January
Transcribed Image Text:January 29, 2020 "Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee decided to maintain the target range for the federal funds rate at 1-1/2 to 1-3/4 percent. The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective. The Committee will continue to monitor the implications of incoming information for the economic outlook, including global developments and muted inflation pressures, as it assesses the appropriate path of the target range for the federal funds rate." Source: Federal Reserve press release - January 29, 2020 March 3, 2020 "The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity. In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by 1/2 percentage point, to 1 to 1-1/4 percent. The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy." Source: Federal Reserve press release - March 3, 2020 March 15, 2020 "Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals." Source: Federal Reserve press release - March 15, 2020 4. In 2020, from Jan 29th to March 15th, (Select All that Apply) Helpful Hint: There are 6 correct answers. A. the cost to borrow money increased B. the cost to borrow money decreased C. the FED is responding to the economic consequences of Covid-19 D. the FED is responding to inflationary pressures E. the FED was trying to increase the money supply F. the FED was trying to decrease the money supply G. the FED was trying to engage in expansionary monetary policy H. the FED was trying to engage in contractionary monetary policy 1. the FED was trying to engage in expansionary fiscal policy J. the FED was trying to engage in contractionary fiscal policy K. the federal funds rate increased L. the federal funds rate decreased M. you would have been better off by getting a loan in January as opposed to March N. you would have been better off by getting a loan in March as opposed to January
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