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This is a free sample preview of the essay
Actions Of The Government And The Increase In Prices
Beginning of essay
The United States economy is currently producing at a level of full
employment in long-run equilibrium. The government then decides to increase
taxes and to reduce government spending in an effort to balance the budget. The
results of the actions taken by the government is the decrease of real G ....
Middle of essay
....the economy from
the current recession.
There are three options that the Federal Reserve has to try and end the
current recession. The federal funds rate could be lowered, the discount to
banks could be lowered, or open market operations could be used. The most
effective of these three options is the use of expansionary monetary policy
through open market operations. The first step in this option is for the
Federal Reserve to start to purchase bonds from consumers. As the Federal
Reserve be.... |
| Number of words: 823 |
Approximate pages: 3 |
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