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Business
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| Number of pages / Number of words: |
6 / 1592 |
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With low prices come low interest rates, and less room for the fed to stimulate the economy. The main goal is to keep the economy steady, achieve neutrality. An utopian economical society looking for the perfect blend of policies to create a solid economy.
Monetary policy tools
The feds influence the market mainly by raising or lowering interest rate called the "federal funds"...
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Banks are required to keep a certain amount of money in reserves to pay for overnight checks, stock ATMs, and other payments. When a bank is running low on reserves it may borrow some from a bank with too many reserves. The interest rates on these loans adjust to supply and demand. If the fed wants to raise or lower the rates, it buys or sells securities from banks, in which the bank receives or sells in reserves...
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General points of the essay
Controlling the Economy with Interest Rates Does it Accomplish the Task on the Consumer Side?
How has the level of employment/unemployment and national minimum wage legislation impacted on the economy as a whole and how will this effect the economy in the years to come?
Interest Rates in the Economy
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