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Title: Macroeconomic Impact on Business Operations

Essay Details

Subject: Business
Author: Judy S
Date: July 11, 2011
Level: University
Grade: A
Length: 7 / 1920
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

Fiscal and monetary policy is used to influence the economy. A well-defined monetary policy has the ability to control an economy and produce sustainable growth. Money Creation Money can be created by a government printing more money or through the banking system. When a government prints more money and spends this in the economy, the actual value of each unit of money already in the economy falls...

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When a government prints more money and spends this in the economy, the actual value of each unit of money already in the economy falls. This reduction of value for each unit of money is known as inflation. When a government prints money to finance a war or other purpose, hyper-inflation usually occurs...

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