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The Macroeconomic Situation In The United States Of America - Essay Example

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The macroeconomic situation in the United States of America could be described as ailing and this is due to the fact that the economy of the country is just recovering from an economic recession. …
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The Macroeconomic Situation In The United States Of America
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The Macroeconomic Situation In The United States Of America

Download file to see previous pages... The country is facing issues with the unstable price of oil in the global market and this has also made the prices of commodity unstable and the level of inflation in the country is rather alarming (Jones, 2008). Thus, the current macroeconomic situation in the country is such that the citizens are faced with the instability of the price of commodity in the market. There are also issues with an absurd increase in the interest rate which has discouraged prospective investors from borrowing money from financial homes. The macroeconomic situation in the country has actually put the US Congress and the Federal Reserve on their toes. There are different things that can be done to salvage the macroeconomic situation in the US. The monetary policies in the country should be tightened through the use of expansionary fiscal policies that would help the country to fully recover from the economic recession that it is faced with. The problem of inflation could also be dealt with by making the aggregate demand lower than the production capability of the economy. ...Download file to see next pagesRead More
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