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FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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M5
2. "After the press conference that followed the Federal Open
Market Committee meeting on June 19, 2013, there were
reports in the media that Chairman Bernanke's comments were
a signal that the Fed would raise interest rates sooner than
expected. As a result, the yield on 10-year U.S. Treasury notes
rose to almost 2.6%, the highest level since August 2011.
a) Comment on how this would affect the IS curve.
b) Show your answer graphically."
Transcribed Image Text:2. "After the press conference that followed the Federal Open Market Committee meeting on June 19, 2013, there were reports in the media that Chairman Bernanke's comments were a signal that the Fed would raise interest rates sooner than expected. As a result, the yield on 10-year U.S. Treasury notes rose to almost 2.6%, the highest level since August 2011. a) Comment on how this would affect the IS curve. b) Show your answer graphically."
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