Question Description
I'm working on a economics discussion question and need an explanation to help me study.
Reflection
This reflection activity is comprised of two sections collectively totaling a minimum of 500 words. Complete your reflections by responding to all prompts.
Federal Reserve
Analyze how changes in the Federal Reserve’s monetary policy affect at least 2 of the 4 components of GDP (e.g., consumption, investment, government spending, net exports). Justify your answer to the following question: Have the Federal Reserve’s countercyclical monetary policies been effective in moderating business cycle swings?
Government Intervention
Government interventions into markets can sometimes succeed, but sometimes they make the situation worse. Explore 2 examples of government intervention that did not work. Explain why the intervention made things worse and what could have been done differently to improve the situation. Support your analysis by including:
- What the situation was
- What the intervention sought to solve
- What happened
- What might have been done differently
Explanation & Answer
View attached explanation and answer. Let me know if you have any questions.
View attached explanation and answer. Let me know if you have any questions.
THE DIGITAL ECONOMY REFLECTION
The Digital Economy Reflection Outline
Student’s name
Institution
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THE DIGITAL ECONOMY REFLECTION
The Digital Economy Reflection Outline
Paragraph 1
Two of the components of GDP most closely related to the general public are
investment and consumption.
Paragraph 2
Reducing interest rates makes lending much more favorable and encourages
investment.
Paragraph 3
Using capital investments again as an example, the favourability of investing from
expansionary policy causes a company to grow and create more jobs.
Paragraph 4
Two examples of how the government’s intervention in an economic situation failed
are railroad regulation and government-owned public companies.
Paragraph 5
The government established a railroad regulation entity known as the Interstate
Commerce Commission to address the growing concerns of unfair and monopolistic pricing
in the railroad industry.
Paragraph 6
The government will often have a stake in public companies or own them entirely in
certain industries, especially the energy industry, to help provide a service for the public in
many areas that the private sector can not or would not provide.
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THE DIGITAL ECONOMY REFLECTION
References
McConnell, C., Brue, S., & Flynn, S. (2018). Economics: Principles, Problems, and Policies.
Twenty-First Edition. New York: McGraw-Hill Irwin.
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THE DIGITAL ECONOMY REFLECTION
The Digital Economy Reflection
Student’s name
Institution
1
THE DIGITAL ECONOMY REFLECTION
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The Digital Economy Reflection
Federal Reserve
The monetary policy utilizes four main tools to affect this change. Two of the
components of GDP most closely related to the general public are investment and
consumption. Both are determinants in the overall health of the United States economy and
efficiency of monetary policy.
Monetary policy directly affects interest rates which determine the favourability of
lending. The Federal Reserve adjusts the discount rate that commercial banks borrow money
and that influences the interest rates for lending to businesses and the public. Reducing
interest rates makes lending much more f...