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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 592 |
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To raise the GDP there are several measures that can be used individually or in a combination. These include raising the FFR so that banks will borrow from the Fed, decrease the RRR so banks can release some of there reserves into the system, and having the Fed buy t-bills and bonds.
? Inflation rises when the money supply is increased...
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Therefore, it is important to watch this key indicator as measures are enacted that lead to this increase. As more money is released into the economy, its value can depreciate. Thus a correct balance must be maintained between GDP and inflation to ensure that the economy is running at an optimal level...
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General points of the essay
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