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Essay

Macroeconomical Impact on Business Operations

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Issue:

Business

 

Written by:

Betty M

 

Date added:

March 27, 2016

 

Level:

University

 

Grade:

B

 

No of pages / words:

5 / 1383

 

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4842 times

 

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Essay content:

They are created by the purchase of government bonds from the public and the issuance of loans. The banks limit the creation of checkable deposits by the amount of currency reserves that they feel obligated, or required by law, to keep. Although people might think there should be an investigation with the banks, thrifts, and loan officers for creating checkable deposits, the Federal Reserve relies on these institutions to create such an important component of the nation's money supply (McConnell & Brue, 2004) Four tools exist that the Federal Reserve uses to control the money supply...
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Those tools consist of the federal funds rate (FFR), discount rate (DR), required reserve ratio (RRR), and the volume of open market operations (OMO). These same tools, along with complex analyses, are used to control the real GDP, inflation, and unemployment levels. Whenever a response to global economic phenomena occurs, fluctuations in the behavior of the economy will follow (University of Phoenix, 2002)...
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General issues of this essay:
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