This week, yields on short-term Treasury bills touched zero.” a. What would be the implication for the investors’ degree of risk aversion? b. What is the impact on the value of the dollar when the Fed...

This week, yields on short-term Treasury bills touched zero.” a. What would be the implication for the investors’ degree of risk aversion? b. What is the impact on the value of the dollar when the Fed cuts interest rates? (In fact, on December 12, 2008, the Fed was pondering reducing the fed funds rate to just above 0%.) c. What would happen to the value of the US dollar against the currencies of emerging economies that are experiencing worse economic conditions relative to the United States?