When the Fed changes the interest rates how does it affect the
bond market and the stock market? Do you expect lower or higher
interest rates in the near future? Why?
Minimum of 500 words.
1. How does collateral affect the interest rate on a bond? How
does subordination affect the interest rate on a bond too? What
else might affect the interest rate on a bond?
2. What is liquidation and reorganization? When should each be
used? Please choose one company that has gone through either type
of bankruptcy proceeding and describe the circumstances leading up
to the filing.
How does a recession in Asia affect U.S. aggregate demand and
the U.S. aggregate demand curve? What has happened to (i) real GDP,
(ii) the price level, and (iii) the unemployment rate?
How does demand affect the ability of a genco to exercise
unilateral market power?
How does transmission congestion affect the ability of a genco
to exercise unilateral market power?
A shelter in place order is issued instead of market adjustment.
How does this affect the short run equilibrium?
Will the economy come back to the long run steady state
equilibrium?