Week 6 Discussion 3 - I would lean more toward...

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With all the other research I have done during this class, one thing keeps coming up, the worth America’s currency is in danger. Therefore, as the chairman of the Federal Reserve I would hesitate to take an expansionary approach to monetary policy by flooding the market with money. The goal of increasing the money supply would be to fight unemployment, however other countries are already afraid that this is the approach we are going to take and they are questioning what will happen with the value of the dollar if we move in this direction.
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Unformatted text preview: I would lean more toward contractionary monetary policy and decrease the total supply of money in the economy in order to fight inflation. By lowering inflation causes money to have more purchasing power which will help consumers and business make long-term plans. Interest rates will fall which will push investment and allow businesses to flourish without having to raise their prices. Source: http://dsp-psd.pwgsc.gc.ca/Collection/FB12-7-1999-4E.pdf...
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This note was uploaded on 03/26/2012 for the course ECON GM545 taught by Professor Gotches during the Summer '11 term at Keller Graduate School of Management.

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