In your initial post, you are to write to either the President (on fiscal policy) or to the Chair of the Federal Reserve (on monetary policy) describing a specific policy action that you believe should be taken at this moment in time (e. g., lower taxes or buy bonds) and explain why you would take the action (what is currently happening in the economy and what will this action accomplish?)

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Business

Natalie Pace

6 February, 09:29

In your initial post, you are to write to either the President (on fiscal policy) or to the Chair of the Federal Reserve (on monetary policy) describing a specific policy action that you believe should be taken at this moment in time (e. g., lower taxes or buy bonds) and explain why you would take the action (what is currently happening in the economy and what will this action accomplish?)

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Luna Brady · Answer 1

The existing state of American economy must be declared earlier respondent the interrogation.

The U. S. financial position is vigorous in 2017. The value rate is in its perfect vary i. e., 2.4 (2-3%). Joblessness is at its ordinary proportion and there isn't an excessive amount of rise or decrease. Conversely, the value is predicted to descent to a pair of 2.1% in 2018 and 2.0 in 2019. Drop in value would cause decrease in GDP and growth in state.

To avoid this drop I will be able to inscribe to manager of Federal Reserve Bank to cut back the rate (expansionary financial policy). Federal reserve will try this by shopping for bonds. Once Federal Reserve purchases bonds the money offer increases and rate decreases. As rate decreases mixture demand and financial gain increases. With escalation in financial gain and mixture demand the value wouldn't decrease in 2018 and 2019.

I would not recommend an expansionary economic policy as a result of it increases the rate yet and thus results in situation out.