Give some thought to the underlying assumptions that were made by the Federal Open Market Committee (FOMC) with regards to its policy. What were the claims made? What evidence was provided to support those claims? What were some underlying assumptions that were held by the FOMC? Did those assumptions end up being true? From an economic perspective,think about the mechanism by which QE would stimulate the economy.How would it impact different economic sectors? What about its impact on different economic variables? Finally, think about the impact of QE on a companys financial status. What impact will it have on a companys cost of capital and capital structure? What about the valuation and price of its stock?
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