Running Head: IMPACT ON BUSINESS OPERATIONS
Macroeconomic Impact on Business Operations
Millicent Darko
University of Phoenix
MMPBL/501 – Forces Influencing Business in the 21st Century
Instructor Kathleen Crump
Money supply is the level of funds available at open time for conducting
transactions in an economy. When money increases it flourishes the economy but when
there is a decrease it causes our economy in turmoil. A cycle one will say of the way money operates, we have to use it to be able to see the gain and profits of it. Furthermore it helps with the production and exchange of goods and services. And without it our economy will be gloomy. Every country has its own way of protecting its economy and controlling what is good and bad for it and when things are not in the right state, measures are taken and enact upon to turn it around. In the United States, the Federal Reserve head and control these things. Throughout this paper will examine how money is created, and how the federal reserve controls it and how it affects macroeconomic factors such as GDP, unemployment, inflation, and interest rates.
The Federal Reserve affects money supply through its monetary policy such as
open market operations and regulates the supply resu ...