Macro_ECO#1

Macro_ECO#1 - Essay 1, Shayra Medal P.I: 2640403...

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Essay 1, Shayra Medal P.I: 2640403 Macroeconomics ECO2013 Prof: Badi Sabet Essay 1 July 10 th , 2011 To explain Monetary Policy I will explain the roots behind it. In Macroeconomics the main goal for every strategy is to lower scarcity and create adequate abundance of our limited resources. These strategies can be defined as stabilization policies which is designed to lower inflation. Stabilization in turn has to types of policies and those are demand-management policies, and supply-side policies. I will discuss demand- management policy, which is formulated to lower unemployment rates and inflation. Which also consist of the monetary policy. Monetary Policy is a process by which the countries supply of money is controlled usually by the Federal Reserve Board also guided by its nations central bank. Its goal is to lower interest rates in order to influence economic growth and stabilization. Monetary Policy can be defined as either expansionary, or contractionary. In a quicker
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Macro_ECO#1 - Essay 1, Shayra Medal P.I: 2640403...

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