Question 1. In your own words, describe what is meant by an open market operation. Explain in detail how the FED can use open market operations to help stimulate credit, production, and employment.
Question 2. "Operation Twist" involves the FED selling its short term securities, while purchasing long term securities. This is an effort to lower the long-term yield curve. With the use of two separate bond market diagrams, one for the short term and one for the long term, show the effect of "operation twist" on short and long term interest rates. How is this maneuver supposed to influence business and the economy?
Question 3. Apple, Inc. has been one of the best performers in recent history. Below is a graph of the stock price over time (Please see the attached PDF document).
a. Use consumer theory, that is, consumer demand analysis, to postulate and discuss two possible explanations of Apple's stock price movement.
The detailed information is enclosed below. Please find attachment.
Attachment:- Open market operation.rar