Financial Markets and Institutions Homework

1. Read the following article Are We Headed for Another Great Depression? (Links to an external site.) Link: https://www.thebalance.com/could-the-great-depression-happen-again- 3305685

Question: Are the current conditions conducive to deflation or should we still be concerned about inflation? Back up your responses with material from your text or the financial press.

(Answer with a paragraph with no less than 175 words nor more than 200 words)

2. Read Federal Reserve Leaves Interest Rates Unchanged (Links to an external site.). Link: https://www.washingtonpost.com/news/wonk/wp/2015/01/28/federal-reserve-leaves- interest-rates-unchanged/

Note, more recently Fed's policies seem to have changed.

Review the above article, feel free to reference the latest regarding interest rates in your discussion. Describe the Fed's rationale for instituting this policy. Please review your text and other websites for hints regarding this rationale. What do you think will be the outcome in 1 year's time from today's date? Try to predict the level of interest rates and the stock market.

(Answer with a paragraph with no less than 175 words nor more than 200 words)

3. Please investigate at least two measures of the health of the US economy and explain why the results are good/bad or indifferent for the state of the economy over the next two years. At the end of your analysis you should try to predict if we are headed to a recession, normal conditions or a boom and provide your reasoning. (Answer with a paragraph with no less than 175 words nor more than 200 words)