Buy custom Macroeconomic Impact on Business Operations
Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
7 / 1938 |
Essay's paper body
The FED was initially was to act as a centralized bank to deal with bank panics. However, through the last century, its role has grown to control fiscal policy and control the nation's money supply (McConnell & Brue, 2005, p. 242). The FED uses three tools to influence the money supply in the US including Open Market Operations, the Discount Rate, and Reserve Requirements...
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The Federal Open Market Committee (FOMC) meets 8 times a year to present information of the state to the economy and predict what direction the economy is going. Armed with this information, the Committee decides wether it will buy or sell Government securities to tighten, ease, or maintain the Federal Funds Rate...
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