Individual Course Assignment

MACROECONOMIC POLICIESNameCourseUniversityTutorDateAccording to a testimony by a study Reserve (FED ) official , US recorded a wasted scotch growth in 2006 . The inflation rate remained comparatively high and only a few jobs were created . However , the carriage worsened in the beginning of 2007 where a downward economical growth was registered , a clear attestation that there had been thrifty strains Much of these problems plenty be blamed on the exuberant financial markets as advantageously as the instability in the world miserliness . Prices of consumer goods as tumefy as gemstone oil rose thus affecting the entire thrift . To get up up the thrift various measures go been adopted both by the judicature as wellhead as her fundamental bank , the Federal Reserve . The government uses fiscal policies to pro cess the flow of money in the thrift thus influencing economic growth . In instances where there is a recession it can increase the money supply in the parsimoniousness with increased consumption or sale of her assets . On the another(prenominal) hand it can buy off her assets and reduce her outlay to reduce excessive money supply in the economy . The Federal Reserve in contrast applies monetary policies with the take on on of regulating the flow of money in the economy . pecuniary policy tools used include changing the provide sine qua non , changing the discount rate as well as Open Market Operations (FOMC , 2008 . To ensure sustainable economic growth both the monetary as well as the fiscal policies are applied as they wholly subscribe at ensuring economic growth...If you want to get a to the full essay, order it on our website: OrderEssay.net

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