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Conduct researchon the web regarding a recent U.S.Federal Reserve contractionary monetary policy action. The article that I selected included the Monetary Policy and the Federal

  • Conduct researchon the web regarding a recent U.S.Federal Reservecontractionarymonetary policy action.
  • The article that I selected included the Monetary Policy and the Federal Reserve: Current Policy Conditions retrieved from Crsreports.congress.gov February 6, 2020

  • Describe how the article you read for this post relates to the U.S. Federal Reserve and monetary policy.
  • The article discussed in detail how the federal government conducts monetary policy by capturing federal funds rate. This is a rate where banks can borrow reserves within hours and even as soon as overnight. With the recession that hit the economy around 2008 -2009 it had an impact on the overall rates. Since then the feds have made a contractionary move to increase the overall rates, and then in July 2019 they reduced the rates.
  • Choose a company that you would like to apply this policy to, and describethe company, its primary markets, and its business model (how it makes money).
  • Chevy motors is a company that has been producing automobiles for years. They focus on providing innovative car models and designs that attract buyers in the automobile industry.
  • What macroeconomic and microeconomic results could occur as a result of this policy?
  • Microeconomics factors could include higher spikes in interest rates therefor leading to less consumer spending and reduction in automobile purchases.
  • Macroeconomic factors could include higher interest rates that effect the foreign capital, and export sales could begin to rise by this overall increase in interest rates. This could cause a swing in purchasing trends and brands that are purchased.
  • How would thispolicy affect you as a business manager for the company you chose, in your decisionmakingrelated to economies of scale?
  • As a manager of Chevrolet I would ensure that our operations are running effectively by applying lean mythology to ensure all waste are eliminated and overall staff is not increased. I would want to ensure that quality of products was not impacted, but begin to look for additional cost savings amongst our teams.
  • Howwould thispolicy affect you as a business manager for the company you chose, in your decisionmakingrelated to your business market opportunities?
  • I would create great relationship with lenders and financial institutions to ensure we could partner on applications for consumers at the best rate possible, I would also evaluate the trends in purchasing of vehicles and only have enough on hand to meet the need of the consumers, if special request were made, we could partner with our other locations to design and build the model that the consumer prefers.
  1. How would thispolicy affect you as a business manager in your decision makingrelated toother areas related to the pursuit of the company's economic self-interest?
  2. How could thispolicy affect the company's ability to pursue:
  • Strategic partnerships?
  • Competitive pricing strategies?
  • High-risk ventures?
  • Talent acquisition?

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