The Fiscal and Monetary Policy and Economic Fluctuations

Feb 3rd, 2012
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American Technological College - Ponce
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Write a three to four (3-4) page paper in which you: Discuss the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment rate in your explanation. Explain the changes in interest rates, inflation, and unemployment rates that your research yielded. Explain one reason for each of the changes in interest rates, inflation, and unemployment rates that you identified in Question 1. Identify two (2) strategies based on fiscal and monetary policy that would encourage people to spend money in order to create economic growth. Explain how the two (2) strategies that you identified in Question 3 could affect the unemployment, inflation, and interest rates. Use at least three (3) quality resources in this assignment

Word Count: 870
Showing Page: 1/7
NameCourseDateIntroduction:The current monetary situation in the USA is not an extremely agreeable one. In correlation to 5 years prior, where the financial situation was truly extreme, now the situation has settled. Despite the fact that the solidness is not in the wanted course, the development parameters have been adequate.Comparison:When comparing the essential jolt to the economy is the investment rates in 2008 were cut ordinarily. The investment rate that began at 3.5% first and foremost of 2008 vibe down to 1% before the end of 2008.the Federal Reserve reports that today the premium rates are lower by 3/4% of what it was in 2008. An alternate macroeconomic sign is the purchaser value file. The purchasing force of the American dollar has expanded more than 2008.it has expanded to $1.08 presently. The expansion rate in 2008 remained at under 1$ in 2008 while presently it remains at 2.1% The economy has been becoming after the retreat however not in the characteristic development rate .the financial development rate has not surpassed 2.25% (Kitov, I. (2006)) . Unemployment levels are still high however not as high as what it was in 2008. The current unemployment rate in the USA is 7.3% while give or take their are12 million individuals unemployed and the rate of occupation era is still horridly poor. (Bureau of work insights) In 2008 the unemployment rate remained at 6.3%and more or less 10 million individuals were unemployed. The cutbacks in busi

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