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Essay / Research Paper Abstract
This 9-page paper explores how well the government and Fed have worked to control the economy during the past three years. Bibliography lists 4 sources.
Page Count:
9 pages (~225 words per page)
File: D0_MTfedgovec.rtf
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Unformatted sample text from the term paper:
to regulate the supply of money, known by economists as M(1), policies and actions do a great deal to influence the economic indicators, from inflation, to the GDP, to balance
of trade. In addition, the government also can aid (or kill) an economy through taxation - the theory goes that if business is taxed, it will be less likely to
put more money into expanding business (meaning hiring more people). The current economic scenario was created by a lot of greed
and stupidity - mortgage-backed securities were carved up and resold as assets, then as the value of the homes dropped, the value of the securities dropped too. As a result,
banks have assets that are worth nothing on their books (which is one reason why so many of them failed). But did the Federal Reserve and U.S. government have a
hand in any of this? Did their policies help speed along the current economic scenario? In this paper, well examine the four
economic indicators, and determine if, and how, the government and Federal Reserve had any impact on these figures. Overview Before beginning
this discussion, it would be helpful to understand the impact that the Federal Reserve and Federal Government have on economics. Economics, of course, is the study of the allocation of
resources when it comes to buying goods and services. The Federal Reserves goal in this scenario is to try to regulate how many of those goods or services are bought
by either adding more money to the economy, or taking it away. Technically, the Fed tries to boost economic stimulus by
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