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Unformatted text preview: ECO 212 Week 6 Assignment: Money Train activity Scenario 1 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... It's important to increase economic growth when the economy is faced with a downturn. The economy must stay at an even pace in order to be successful for all those involved. When there is an influx of currency into the system it makes sense for the government to lower the requirements the government puts on the reserve. When there is a fluxuation either way the government will regulate this in order to maintain an even flow for the economy. In the situation where the economy is hit with a negative...
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This note was uploaded on 08/21/2011 for the course BUS 101 taught by Professor Doe during the Spring '10 term at University of Phoenix.
- Spring '10