Question: Using the FRED economic database (https://fred.stlouisted.org/), graph the Effective Federal Funds rate from 2007 to the present. Now click Edit Graph and then Add Line.

Using the FRED economic database (https://fred.stlouisted.org/), graph the Effective Federal Funds rate from 2007 to the present. Now click Edit Graph and then Add Line. Add the Unemployment rate. Chick Format and change the Y-axis position of line 2 (unemploy- ment) to the right-this will give you one axis for the Federal Funds rate on the left and one axis for the Unemployment rate on the right.

a. How did the Fed respond to increasing unemployment?

b. Did monetary policy work to lower unemployment? Can you tell from this graph?

c. What happens if unemployment spikes back up? Can the Fed lower the Federal Funds rate much more? Could the Fed push the Federal Funds rate below zero?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Foundations Of Modern Macroeconomics Questions!

Using the FRED economic database ( https://fred.stlouisfed.org/ ), graph the Effective Federal Funds rate from 2007 to the present. Now click Edit Graph and then Add Line. Add the Unemployment rate....

1. (Points: 5) Use data from St. Louis Federal Reserve FRED database to plot historical trends (1970 onwards or from the earliest available date if later than 1970, to the most recent date available;...

Overall, labor force participation rates have been declining in the U.S. economy but not for every demographic. Lets examine the labor force participation rates of teenagers and older people. Using...

Q1-. Using the FRED economic database (https://fred.stlouisfed.org/), find the \"Total Unemployed, Plus All Persons Marginally Attached to the Labor Force, Plus Total Employed Part Time for Economic...

--------------------------------------- Q1-. Using the FRED economic database (https://fred.stlouisfed.org/), find the "Total Unemployed, Plus All Persons Marginally Attached to the Labor Force, Plus...

1- 1- + 1-O 1-O 1. (Parts a to f 10 points, g 20 points) Consider an endowment economy with two goods (A and B) and with the periods. Households earn Y. and Y:+1 as endowment income. They can save,...

Overview: In this assignment, you will examine the path of two interest rate series and identify any trends, changes, or correlations between the two economic data series. Using the same range of...

Overview In this assignment, you will examine the path of two interest rate series and identify any trends, changes, or correlations between the two economic data series. Using the same range of...

https://fred.stlouisfed.org/ . 7.4 Small Group Discussion - Unemployment and the Federal Funds Rate This activity focuses on unemployment and the federal funds rate. Follow the steps below to create...

Read the Entire article : https://economistsview.typepad.com/economistsview/2012/01/fed-watch-zirp-and-interest-income.html This HW assignment is very relevant to the Great Recession experienced in...

I just want to be a good accountant, technology does not interest me. Comment on this statement, considering todays technology environment.

A 3.5-cm-diameter cylinder contains an electric heater that maintains a constant heat flux at the surface of 1500 W/m2. If the cylinder is inclined at an angle of 35o with the horizontal and exposed...

After - tax cash flows for a cash pre - tax inflow is equal to the related inflow multiplied by ( 1 - tax rate ) . Select one: True False

The probabilities of a return on an investment of $5,000, $7,000, and $9,000 are 1 / 2, 3/8, and1 / 8.