ROME - EconomicsContinued o

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Economics Continued 16:08 o Inflation is the tendency of money to become worth less over time Slow Moderate growth in the economy = good 3% - 4%  Moderate inflation = good 2% - 3%  o The Economic or Business cycle Goal is to maximize growth and minimize the downs Overall though the economy is growing The Government doesn’t want the “boom” and “bust” to be to big Governments try to enact policies to soften those curves A soft landing Where the decline, although inevitable, was softened Counter cyclical policy The government tries to slow down a fast growing economy The government tries to speed up a declining economy
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                                                     o Fiscal Policy Government uses it decisions on how it spends money in order to influence to economy John Menerd Keens “Keensian Economics” During times of economic growth governments should try to raise taxes and lower  spending to create a gentle growth When the economy is going down taxes should be lowered and spending should be  raised
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Wars Wars are good for the economy People die creating more jobs Bullets, bombs, planes, and tanks are created providing jobs Problems w/ fiscal policy Democracy isn’t good in Fiscal Policy b/c it takes time Recessions take time but politics take longer Has a pro-cyclical effect b/c their policies don’t take effect until the curve comes out of  it’s “down” phase and it turbo charges the up change o Milton Friedman Instead of demand-based spending policies, he promoted monetary policy o Lets try to manage the cost of money for borrowing Federal Reserve controls the mint and controls the amount of  money issued each year Banks don’t just sit on their money, they lend it out and  invest it People expand their business Banks take out loans to cover their shortcomings in money when there is a “bank run” The Federal Reserve controls their interest rates and is an undemocratic institution Economists their serve 14 years Manipulate the cost of money Interest is increased to slow down the economy Interest is decreased when the economy is down so the cost of money is cheaper
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Sex Obsessed Splatter Fest Video on Rome  16:08 o 82 BC Rome has trouble controlling one of their generals
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Sex Obsessed Splatter Fest Video on Rome  16:08 General Cornelius  o Established  a camp on the outskirts of Rome to intimidate his enemies o Returning from a campaign in the east Demands that the senate gives his soldier’s land Senators refuse He begins to post lists of his political enemies with a price 
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ROME - EconomicsContinued o

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