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Title: Macroeconomic Impact on Business Operation

Essay Details

Subject: Business
Author: Lois I
Date: September 24, 2014
Level: University
Grade: A
Length: 6 / 1548
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

I will also explain how money is created in a macroeconomic system, and recommend monetary policy combinations to best achieve a balance between economic growth, low inflation, and a reasonable rate of unemployment. Feds Tools of Monetary Control The Fed has three tools that are used for monetary control in altering the reserves of commercial banks...

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The money supply is the total amount of currency plus deposits held by the public. These tools can alter economic growth, change the rate of inflation, the level of employment, and adjust the exchange rate, by expansionary or contractionary monetary policy. Open-Market Operations The amount of money circulating in the economy can be adjusted through open-market operations, specifically with selling and purchasing of U...

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