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Macroeconomic Situation of the US - Essay Example

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The paper "Macroeconomic Situation of the US" highlights that due to their increase in investments, employment opportunities will be created and due to an increase in employment, consumption will increase. An increase in consumption will further elevate the confidence of the investors…
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Macroeconomic Situation of the US
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The consumption levels and the rate of GDP are even increasing but at the rate at which a tortoise travels, this is because of increased oil prices and damaged confidence of the investors, while the Federal Reserve has tried to help the US recover its GDP and consumption rate by offering money at interest rates which are as low as zero percent (CBO, 2013 & FRB, 2013). Another huge problem that the US is currently trying to counter is the budget deficit and the trade deficit which continues to threaten the US as a nightmare.

There are various steps that can assist the US in solving its problems, one of the steps the US can take is that it can implement an expansionary monetary policy. Expansionary monetary policy is one in which the government injects funds into the economy (Arnold, 2011, p.393). When funds will be injected into the economy of the US, investors will start getting loans on easy terms and they will be able to invest more. Read More
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