I need a 150 word reply to the discussion reply below: Topic:

I need a 150 word reply to the discussion reply below:

Topic:Monetary Policy

Expansionary monetary policy is achieved when the Fed increases the economy’s money supply to promote spending and borrowing. This causes a decrease in interest rates which can stimulate the economy during periods of recession. Long-term expansionary monetary policy can lead to inflation. To combat inflation, the Fed will implement a restrictive monetary policy. The contractionary monetary policy increases interest rates, which reduces borrowing and promotes saving (LinkedIn, 2015). In my opinion, the Fed should try to find a balance between expansionary and contractionary monetary policy. The economy has stabilized since the 2009 recession but quickly increasing interest rates could negate any progress that has been made.

Increasing the money supply will devalue the currency since there will be more of it available. Interest rates will decrease and inflation will start to increase (LinkedIn, 2015). This is due to the value of the currency being decreased and more money being required to buy the same item. The Fed may avoid this approach because of the long-term impact it will have on the economy and value of the USD.

If a currency is backed solely by the faith in government, then the best way to maintain stability is to simply avoid policy and action that would erode this faith. The Fed can build trust in a currency by enacting policy that strengthens the economy and provides a level of predictability. Drastic, unexpected changes could erode faith in the USD which would lower its value.

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more