money train multimedia

money train multimedia - Scenario 1 In 150 to 200 words,...

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In 150 to 200 words, explain your reasoning for the way you are planning on using Reserve Requirements. Be sure to address the following: 1. How Reserve Requirements 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 Reserve Requirements At the end of the game, you will be provided with this information to give to your instructor. Answer: Type your response here. .. To have a growth the Federal Reserve must lower the reserve requirements. The lower reserve requirement means that banks have to keep less money. This means that they will have more money to loan out thus making an increase in the money supply. The money supply will then decrease the interest rate. By having a lower interest rate more people will be willing be willing to borrow money. This will make a growth in the economy and also make a reduction in the unemployment and increase income. Scenario 2
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money train multimedia - Scenario 1 In 150 to 200 words,...

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