Need ECO/372 paper done, anyone interested? Money and the Prices in the Long Run and Open Economies Purpose of Assignment The primary focus of this assignment is to understand the impact of Fiscal and Monetary Policy on GDP. Week 3 will help students develop an understanding of what money is, what forms money takes, how the banking system helps create money, and how the Federal Reserve influences the quantity of money. Note - there are limits to how much control over the bank system the Federal Reserve can force. The banks are the major source of money creation in a boom period, because of lending, and during a recession the Federal Reserve can't force them to make loans, hence the effective money supply can shrink even while the Federal Reserve is engaging in significant expansionary policies. The past decade shows us there is almost no direct relationship between these money supply quantity and inflation. This partially explains why we saw effectively zero inflation during the largest period of Federal Reserve Expansionary Monetary Policy in the history of the economy, during the past decade or so.The IS/LM model clearly shows this is not the case. At a minimum three additional factors must be accounted for: 1) productivity growth, 2) population growth, and 3) Agg. Demand/Agg. Supply imbalances. Students will review the basic concepts macroeconomists use to study open economies and will address why a nation's net exports must equal its net capital outflow. Students will focus on the effect of Fical and Monetary policy on GDP.
Need ECO/372 paper done, anyone interested?
Money and the Prices in the Long Run and Open EconomiesPurpose of Assignment
The primary focus of this assignment is to understand the impact of Fiscal and Monetary Policy on GDP.
Week 3 will help students develop an understanding of what money is, what forms money takes, how the banking system helps create money, and how the Federal Reserve influences the quantity of money. Note - there are limits to how much control over the bank system the Federal Reserve can force. The banks are the major source of money creation in a boom period, because of lending, and during a recession the Federal Reserve can't force them to make loans, hence the effective money supply can shrink even while the Federal Reserve is engaging in significant expansionary policies. The past decade shows us there is almost no direct relationship between these money supply quantity and inflation. This partially explains why we saw effectively zero inflation during the largest period of Federal Reserve Expansionary Monetary Policy in the history of the economy, during the past decade or so.The IS/LM model clearly shows this is not the case. At a minimum three additional factors must be accounted for: 1) productivity growth, 2) population growth, and 3) Agg. Demand/Agg. Supply imbalances. Students will review the basic concepts macroeconomists use to study open economies and will address why a nation's net exports must equal its net capital outflow. Students will focus on the effect of Fical and Monetary policy on GDP.
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