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5) a) How and why might an increase in the current and expected future fed funds rate target affect: longer-term Treasury rates? the spread between
5) a) How and why might an increase in the current and expected future fed funds rate target affect: longer-term Treasury rates? the spread between corporate bond rates and Treasury rates? equity prices? the foreign exchange value of the dollar? (2) b) Are these financial variables the objectives of monetary policy - and if not, why do Fed policymakers care about trying to influence them? (1) c) Why did the Fed turn to "unconventional policies" during the Great Recession, what were those policies, and how were they supposed to affect financial conditions? (2)
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