Question
Conduct researchon the web regarding a recent U.S.Federal Reservecontractionarymonetary policy action. The article I chose is How Do Governments Reduce Inflation Describe how the article
- Conduct researchon the web regarding a recent U.S.Federal Reservecontractionarymonetary policy action.
The article I chose is How Do Governments Reduce Inflation
- Describe how the article you read for this post relates to the U.S. Federal Reserve and monetary policy.
This article talks about economy growthdue to increased spending which increases prices for goods and also makes currency worth less in the economy
- Choose a company that you would like to apply this policy to, and describe the company, its primary markets, and its business model (how it makes money).Target opened its first store in 1962bin Roseville, Minnesota. Target employs 409,000 people and an average revenue of $6.5 billion and increase of 40.4% from 2019. Target is a general merch store carring goods for home, toys, appeal, dry goods and grocery items, electronics and more
- What macroeconomic and microeconomic results could occur as a result of this policy?
Unemployement and slowed production would be macroencomics and microeconomics. Unemploymentincreases cost the goverenment money in insurance,social services expenses, and administration which also shake consumer confidenceand reduces demand for product and services. Slowed production can throw the economy into a recession loop and take years to reampproduction
- How would thispolicy affect you as a business manager for the company you chose, in your decisionmakingrelated to economies of scale?
Product shortages, longer customer chackout lines would aid in loss of sales /revenus for Target.
- Howwould thispolicy affect you as a business manager for the company you chose, in your decisionmakingrelated to your business market opportunities?
Employee wages would have to increase in order to reatin employees, Loss sales and major product outs would help this decision.
Leslie Kramer Jan 22,2021https://www.investopedia.com/sk.answers.111314/what-methods-can-government-use-control-inflation.asp
https://corporate-target.com
Angie Mohrhttps://smallbusiness.chron.com/pros-cons-contractionary-monetary-policy-3871.html
- 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?
- How could thispolicy affect the company's ability to pursue:
- Strategic partnerships?
- Competitive pricing strategies?
- High-risk ventures?
- Talent acquisition?
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