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Essay

China Moves To Tighten The Money Supply

Essay specific features

 

Issue:

Business

 

Written by:

Ella W

 

Date added:

November 16, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 372

 

Was viewed:

2558 times

 

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Essay content:

When the money supply in an economy increases, interest rates decrease. With lower interest rates, an increase in the level of investment spending will occur. This then will cause the level of aggregate demand to increase, and in doing so will push the economy beyond full employment and cause the real GDP to rise to its maximum potential...
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All of this will cause the price level to rise creating inflation. One of the main functions of China’s central bank is to regulate the countries money supply, and it is able to do it through monetary policy. In an effort to control this situation, China’s central bank has taken a contractionary monetary policy and has raised the reserve ratio for the commercial banks...
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General issues of this essay:
Analysis the role of China government in regulating the safety and health in China Coal Mine Industry China Moves To Tighten The Money Supply China's Economy China’S Rapidly Growing Economy And Its Pending Implosion China’s Growing Economy—Helped or Hindered U.S. Economy Federal Reserve Bank Changing Money Supply Federal Reserve and Money Supply Government Policy and How Economy is Affected Government Spending Influences Economy how does the federal reserve control the money supply? Money & capital markets in China Money Supply Relationship between the money supply and nominal GDP Government Interactions with the Economy Y2k: Should We Be Worried?
 

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