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ces and damaged confidence of the investors, while the Federal Reserve has tried to help 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 US as a nightmare.
There are various steps that can assist US in solving their problems, one of the steps US can take is that it can implement an expansionary monetary policy. Expansionary monetary policy is one in which the government injects fund into the economy (Arnold, 2011, p.393). When funds will be injected into the economy of US, investors will start getting loans on easy terms and they will be able to invest more. Due to their increase in investments, employment opportunities will be created and due to increase in employment, consumption will increase. Increase in consumption will further elevate the confidence of the investors and they will invest more.
Newsroom - Organisation for Economic Co-operation and Development. (n.d.). Organisation for Economic Co-operation and Development. Retrieved February 17, 2013, from
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It has been found that the economy of the United States has rescued itself from the recession and has begun to rise since the second half of the year 2009. It was expected that the economy of the United States in the year 2010 would grow by 2.9 percent and in the year 2011 it would decline to 2.5 percent.
The level of real income rose as the result of high terms of trade as well the inflation rate got reduced. The ratio between the prices of exports and the prices of imports are regarded as the terms of trade. With high rate of terms of trade the country will be able to obtain higher imports with relatively fewer amounts of exports.
erve Bank of Australia (RBA) was established in the year 1959. The creation was put into place by the reserve bank act 1959. The act lays down the roles of these bank a puts it that this is not a profit acquisition bank. The bank introduction has seen many improvements in the economy of Australian.
The revenue of the government can be arranged through a variety of ways like taxation, sale of fixed assets, borrowings and consumption of fiscal reserves. The government try to use the fiscal policies to stimulate the level of aggregate demand in the economy (Kopcke, Tootell and Triest, 2010, p.
The essay will discuss the impacts created by this financial crisis on different economies in the world. This part of the essay will concentrate on the growth of real Gross Domestic Product, inflation rate and unemployment rate in Australia, United States and United Kingdom.
What explains the divergence And perhaps equally important, what conditions either lead to further divergences or produce convergence North (1990, pp. 6-7).
In the context of the present paper, the above questions have two implications. First, what macroeconomic policy-mix is conducive to economic growth Second, why do governments of some countries adopt the optimal policy mix and the others do not There has been extensive research into the first question with regard to open developing economies (see for example, Little et al., 1993; World Bank, 1987).
The article addresses each of these issues and what Pres. Barack Obama must do to achieve good results together with the people who might be able to help him. Fiscal cliff, Tomasky suggests, will most probably be responded to with the impending tax increase
The Uncles idea is very fine as it would diversify his income base of the coming day’s but there is other economic possibilities provided by the feds which would affect the demand and supply of the uncle’s properties.
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