Macroeconomic Essay Example | Topics and Well Written Essays - 250 words - 5

Macroeconomic - Essay Example ces and damaged confidence of the investors, while the Federal Reserve has tried to help US recover its GDP and consumption rate by offering money at interest rates which are as low as zero percent (CBO, 2013 & FRB, 2013). Another huge problem that the US is currently trying to counter is the budget deficit and the trade deficit which continues to threaten US as a nightmare. There are various steps that can assist US in solving their problems, one of the steps US can take is that it can implement an expansionary monetary policy. Expansionary monetary policy is one in which the government injects fund into the economy (Arnold, 2011, p.393). When funds will be injected into the economy of US, investors will start getting loans on easy terms and they will be able to invest more. Due to their increase in investments, employment opportunities will be created and due to increase in employment, consumption will increase. Increase in consumption will further elevate the confidence of the investors and they will invest more. Newsroom - Organisation for Economic Co-operation and Development. (n.d.). Organisation for Economic Co-operation and Development. Retrieved February 17, 2013, from