ECO 203 Week 5 Final Paper, Expansionary Economic Policy
The Federal Reserve Bank has numerous tools employed in order to expand the supply of money in the market. In this regards the first tool is Federal Fund Rate. The Fed Fund Rate refers to the rate that banks charge from each other for overnight deposits. Additionally central bank requires the banks to maintain certain amount of deposits in reserve at their local Federal Reserve Branch every night. In this regards banks having excess amount lend to those having balance less than reserve required at the end of day. The Fed drops the reserve ratio or rate it would become cheaper for banks to maintain their reserves. Giving them more……………..Continued
ECO 203 Week 5 Discussion 1, Foreign Direct Investment
Identify some of the benefits and costs to host country from allowing a multinational corporation to locate in a country with a developing economy. Discuss with your classmates if developmental assistance from world developmental agencies. Such as the World Bank or the United Nations, would be preferable to private investment.
ECO 203 Week 5 Discussion 2, Economies in Transition
Discuss some of the challenges associated with an economy transitioning from socialism to capitalism.