MGMT 1 Lecture Notes - Lecture 4: Monetary Policy, Commercial Bank, Open Market Operation
Document Summary
Lecture 4: economics (chapter 2) and decision making and behavioral. Two important tools in addition to creating laws: Deals with tax policies and government spending. Usa runs on a deficit because we have a lot of debt and we continue to borrow money to spend on our country. National debt: accumulation of deficits over time. Cuts in government spending (infrastructure, social programs, military) decrease deficit. Usa is in a debt because we borrow money to create these programs. However, government spending can be helpful to stimulate a weak economy (keynesian economics) Middle class consumers are more of the job creators than rich people. The federal reserve bank (fed) is the most important organization with respect to managing the money supply. Most important bank in the united states and world (due to the status of. More money = more spending but more money leads to inflation. Goal is to decrease inflation but keep the economy going.
