Macro Case Analysis Final

Macro Case Analysis Final - L angston Cabaniss Case...

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Langston Cabaniss Case Analysis Money Supply Macroeconomics 2301 Problem Statement Total amount of money available in the economy is not sufficient. Strategic Opportunity To increase the money supply by stimulating Consumer Spending and Investments, which will cause economic growth to occur compared to last year. Tactical Opportunities 1) Increase the money supply by buying bonds. 2) Decrease the reserve amount required from 10% to 8%. 3) Decrease the discount rate from .25% to .10%. Issues 1) A significant amount of citizens are too hesitant about spending their money. 2) Many citizens are not confident in putting their money in the American banking systems, thus fore putting their money in overseas banks. 3) A large amount of citizens have an overbearing sense of entitlement, making them not feel obligated to do their part in stimulating the economy 4) Many Americans are uneducated in the knowledge of what might happen to the economy if they do not spend and growth does not occur. 5) A significant portion of Americans are not willing to take risk in big business
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This note was uploaded on 09/01/2011 for the course ECON 2023 taught by Professor Unknown during the Summer '05 term at Arkansas.

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Macro Case Analysis Final - L angston Cabaniss Case...

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