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Altering Monetary Policy
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A 5 page paper discussing a given set of hypothetical economic conditions, analyzing the conditions individually and in the presence of other, related indicators. The Federal Reserve’s action should be to reduce interest rates to encourage business expansion and consumer spending. As spending increases, GDP growth rate will increase as well, as will demand for consumer goods and services. Businesses will need to produce more of each, and likely will need to hire additional workers. If these have been out of the labor force for some time they will increase personal spending too, contributing to greater growth of GDP. Regardless of where interest rates are, the government needs to control its own spending. Bibliography lists 3 source.
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Pages:
5
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Filename:CC6_KSeconMonPol.rtf |
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Paper Title:
Altering Monetary Policy
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