Macroeconomic Impact on Business Operations

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Donald P


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November 24, 2010








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The Fed can implement a contractionary fiscal policy, that decreases government spending and/or increases taxes, or it may implement an expansionary fiscal policy that increases government spending and/or decreases taxes to stabilize the economy as needed (McConnell & Brue, 2004). Alternatively, the Fed can implement the monetary policies of easy money or tight money...
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Alternatively, the Fed can implement the monetary policies of easy money or tight money. Which policy to use is influenced not only by the present economy of the United States, but also Asian and Western economies. Previous Fed Chairman Alan Greenspan stated last year that the United States could not "remain an oasis of prosperity unaffected by a world?experiencing greatly increased stress" (Ip, Solomon, & Wessel, 2007)...
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