The Meaning of Money

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****Please follow the attached grading rubric closely. Format with APA 6th Ed. This means that every bullet point in the assignment instructions should have a heading within the paper. Site all parts of references in accordance with APA.****

Purpose of Assignment

Week 3 will help students develop an understanding of what money is,
what forms money takes, how the banking system helps create money, and
how the Federal Reserve controls the quantity of money. Students will
learn how the quantity of money affects inflation and interest rates in
the long run, and production and employment in the short run. Students
will find that, in the long run, there is a strong relationship between
the growth rate of money and inflation. Students will review the basic
concepts macroeconomists use to study open economies and will address
why a nation’s net exports must equal its net capital outflow. Students
will demonstrate the relationship between the prices and quantities in
the market for loanable funds and the prices and quantities in the
market for foreign-currency exchange. Student will learn to analyze the
impact of a variety of government policies on an economy’s exchange rate
and trade balance.

Assignment Steps

Resources: National Bureau of Economic Research

Develop a 2,100-word economic outlook forecast that includes the following:

  • Analyze the history of changes in GDP, savings, investment, real
    interest rates, and unemployment and compare to forecast for the next
    five years.
  • Discuss how government policies can influence economic growth.
  • Analyze how monetary policy could influence the long-run behavior of
    price levels, inflation rates, costs, and other real or nominal
    variables.
  • Describe how trade deficits or surpluses can influence the growth of productivity and GDP.
  • Discuss the importance of the market for loanable funds and the
    market for foreign-currency exchange to the achievement of the strategic
    plan.
  • Recommend, based on your above findings, whether the strategic plan can be achieved and provide support.

Use a minimum of three peer-reviewed sources from the University Library.

Format your paper consistent with APA guidelines.

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