Economics Chapters 16-18

Chapter 16

The Federal Reserve Act was created to make sure that the currency that is currently being used has worth. This is currently being backed by the government. It also affects the economy through the way the worth of the dollar is affected. To me, I feel that the this has helped the economy This gives my family comfort knowing that a one dollar bill is worth one dollar.

Regulating the money affects life in America in many ways. This is because regulation is important for the key of the benefit of the economy. To me, this means that measurements of the money supply is an important guide in the conduct of monetary policy. This can affect families through the way it can help with. This affects the nation through they way it ensure price stability and trust in the currency.. What are some ways the government restricts the supply? .

Monetary policies affects life in America in many ways. This is because of its ways to help the economy by emoploying reserver requirements, discount rates, and open-market operations. To me, this means that all of these help moniter the economy by employing these policies. To my family this benefits the economy by making sure that the United States doesn’t fall in economic disarray, which is how it affects the nation Its impact is very important today because it makes sure that there is a minimum amount of money a bank must have at all times, discount rate which is the minimum interest rate set by the Federal Reserve for lending to other banks, and open-market opperatiations whichsis the sale ore purchance of bonds to finance other operations.

Chapter 17

Trade is the exchange of items between multiple parties. This affects life in America greatly because the need of trade helps promote the producing and specialization of certain goods. To me, this means that if there is more circulation of trade, then the economy will grow. To my family it is seen as needed to build relations between countries. This can affect families through the way it allows them to get products that would normally wouldn’t be able to be produced in the country. Trade affects the nation through they way it allows more resources to come into the country. Its impact is very important today because of how it can help with the circulation of money and/or items or guds

Trade barriers affects life in America in both positive and negative ways. It helps negatively because of how it can limit the supply, but this could lead to some positives as they will need to be self-sufficient in order to help grow the economy. To me, this means that it can affect families more because of the limitations of trade. This could lead to the limitations of items that are needed to survive. Trade barriers affects the nation through they way it limits supply, but promote self sufficiency. Its impact is very important today because of how it can help determine the difference between a damaged economy or a healthy economy. (My family believes that it is necessary in some cases.

Exchange rates affects life in America in an important way. This is because the exchange rates determine the changing values of certain countries. To me, this means that we are able to determine if our economy is worsening or doing better. To my This can affect families because the amount of worth currency has affects what is available to the market. Exchange rates affects the nation through they way it allows us to determine the worth of certain currency, thus allowing us to understand a country’s worth. Its impact is very important because of its use.

Chapter 18

Development affects life in America in important ways. This is because part of development determines a country’s economic standing. To me, this means that the less “developed” a country is the less it is the less economic development there is. Development is seen as nessicary to my family. This can affect families because there will be more economic limitations a less developed country will have. Development affects the nation because development affects the health of the economy. Its impact is very important today because of its determining factors.

Production is the creation of goods and services. This affects life in America in positive ways. This is because if production levels increase, manufacturers earn more profit through increased sale volumes. To me, this means that if production increases the economy will grow. To my family they believe that it is necessary for production to happen because if there was no production, no goods would be created, therefore destroying the economy. This can affect families through the way it affects them from buying the products that they need to survive. Production affects the nation through they way it helps the health of the economy thus, making it very important. Its relevance today is with one of Donald Trump’s policies, with forcing manufacturers to produce the products here, this will help the production growth.

Investing affects life in America in many positive ways. This is because it allows for economic growth and can contribute the the nation’s wealth. To me, this means that people will be able to contribute the the economy. To my family they believe it is not that necessary for a country to grow as there are many different and effective ways of growing the economy. This can affect families through the way because families who invest can not only help themselves but also help the overall economy. Investing affects the nation through they way it promotes positive ways of growth which is its impact today. \