QUESTION 1

Analyse the causes and consequences of near zero interest rates in the USA since 2008. In theory, what impact should this policy have had on the value of the US dollar? Explain why this hasn’t necessarily been the case over the last seven years.

QUESTION 2

Consider the recent rise in the US interest rate – what impact has this had on the economy of other countries? Would you recommend the Federal Reserve to continue increasing US interest rates as it plans to do. Why/Why not?

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