3 pages/≈825 words
Mathematics & Economics
The Economy, Monetary Policies, and Monopolies (Essay Sample)
Assignment 2: The Economy, Monetary Policy, and Monopolies Due Week 8 and worth 200 points Write a three to four (3-4) page paper in which you: 1. Analyze the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment in your analysis. 2. Propose two (2) strategies that the federal government could implement that would encourage people to spend more money in order to create employment opportunities. 3. Identify a situation in the past 50 years in which the government used antitrust policies to stop a monopoly from occurring. Include the circumstances of the proposed monopoly and the reason the government stepped in. Predict what would have occurred had the monopoly succeeded. 4. Propose two (2) methods of identifying groups of customers who should receive a discount for a product or service without alienating consumers. 5. Suggest three (3) reasons a monopoly may or may not be efficient in any economy. 6. Use at least three (3) quality resources in this assignment. Your assignment must follow these formatting requirements:  Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.  Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required page length. source..
The Economy, Monetary Policies, and Monopolies Name Institution Professor Course Date The Economy, Monetary Policies, and Monopolies The US economy is one among the most technologically advanced countries in the world. The economic situation, however, has not always been a stable one. Interest rates have hit unstable levels at one time, and the federal government budget balance has weakened. Consumer spending has continued to be constricted with the fear of increasing unemployment continuing to depress consumer sentiments. Unemployment levels have gone high relative to the last five years. However, unemployment rates are low compared to the last two years, which is a sign of improvement in the economy`s unemployment status. Unemployment acts as an indicator of how other sectors of the economy are performing. The increasing inflation rate has continued to squeeze the disposable income of US citizens, affecting most the lower income level group. A squeeze in the real value of income reduces the consumption rates especially of non-essential commodities and subsequent investments in these sectors. Changes in the interest rates have both positive and negative implications on the US economy. Interest rates have been low for the last few years which has been good news to mortgage applicants but unfavorable to savers. To stimulate economic growth, the federal government is aiming at keeping the rate at which banks lend money among themselves at as low as 0.25% CITATION Ron13 \l 1033 (Ronald D Lankford, 2013). To stimulate spending in the economy, encourage savings, investments and creation of employment, the government can implement several strategies. Two of such strategies include ensuring an accountable and safe transportation system and improving programs that waste on taxpayer`s money...
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