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Essay / Research Paper Abstract
This 4 page paper considers the way in which monetary policies, both part-time present, may have an impact on Toyota, with specific attention paid to the way in which demand for Toyota vehicles emerges within an economy. The bibliography cites 3 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEmontoyota.rtf
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Unformatted sample text from the term paper:
impact may be indirect, but can be significant, especially when looking at the use of monetary policy tools. Toyota, the automotive manufacturer, is a firm that can be sensitive
to changes in the economic environment, during a recession there will be decreased demand for cars/vehicles as the level of disposable income for both consumers and businesses, large ticket items
such as vehicles take a large level of the disposable income and their elasticity indicates a decrease in demand greater than decrease in disposable income, having a negative impact on
the firm, likewise during economic growth the firm is likely to see an increase (Nellis and Parker, 2006). Monetary policies are undertaken with the aim of impacting the economy and
either slowing down growth to prevent an economy from over heating, or, as seen in more recent times, to stimulate demand. To
assess the impact we first need to define what it meant by monetary policy. Monetary policy is the way in which a government or central bank can influence and control
the money supply in order to have can influence on the different aspects of the economy. In order to best understand monetary policy it is best to first look at
its objectives and the tools used for those objectives. The aims of monetary control are generally the same as the macro economic objectives (Howells and Bain, 2007). This means that
they aim to control unemployment and interest rates, ensure good rates of economic growth, control inflation can maintain a healthy balance of payments (Howells and Bain, 2007). The assessment
of monetary policy can be hard and as such it is usually measured by comparison to economic indicators such as the growth of the nominal income or exchange rate fluctuations
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