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Unformatted text preview: At the end of the game, you will be provided with this information to give to your instructor. Answer: Raising the rates and reserves will cause there to be less money flow in the economy. This will cause a chain reaction that will drive competition and the lowering of prices to beat out the competition. Scenario 3 In 150 to 200 words, explain your reasoning for the way you are planning on using Open Market Operations. Be sure to address the following : 1. How Open Market Operations affect the economy 2. How your action will affect economic growth 3. Why it is important to increase economic growth 4. Your rationale for the use of Open Market Operations At the end of the game, you will be provided with this information to give to your instructor. Answer: I believe this step will give more freedom to the banks causing them to lend more money. This will act a stimulus and will open the door for better pricing on American goods....
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- Spring '09