Money Train Assignment Xeco

Scenario 1

In 150 to 200 words, explain your reasoning for the way you are planning on using Reserve Requirements. Be sure to address the following: 1. How Reserve Requirements affect the economy 2. How your action will affect economic growth 3. Why it is important to increase economic growth 4. Your rationale for the use of Reserve Requirements At the end of the game, you will be provided with this information to give to your instructor.

Answer:

The Reserve requirements affect the economy by keeping the banks and government wealthy and this allows for us to keep inflation more controlled and unemployment rates kept down. In more detail the Reserve requirement is the minimum amount that must be held to keep the checks and balances, balanced.

My action will allow the economic growth to grow at an average pace, this is what we want otherwise it would potentially be growing to quickly or too slowly and this would affect the unemployment rate or inflation rates if it did grow to quickly or too slowly.

It is important to increase the economic growth to keep up with inflation as well as the employment rates and too allow jobs and companies to continue to grow.

My rationale for the use of the reserve requirements is I am trying to keep the economy growing at a consistent and steady pace.

Scenario 2

In 150 to 200 words, explain your reasoning for the way you are planning on using the Discount Rate. Be sure to address the following : 1. How the Discount Rate can affect the economy 2. How your action will affect economic growth 3. Why it is important to slow economic growth 4. Your rationale for the use of the Discount Rate At the end of the game, you will be provided with this information to give to your instructor.

Answer:

The discount rate can very much so affect the economy by allowing the banks to raise the interest rates it might cut back on the rapid growth of the economy, allowing it to stabilize it self. My actions of raising...