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Fed Chairman Ben Bernanke finally confess that the Fed has been printing more new currency over last some months to help stimulate the economy and more recently noted economy may not yet be out of woods, as some of us may already have concluded.. But, what about the money? I think we touched a bit on this subject in previous weeks but never came up with any concrete conclusions.
How much more money has the Fed printed and where is it now? Has it been stored in the Fed's vaults, given to member banks, or has it already been inserted into the economy; and if it has been inserted into the economy, how was it inserted and what affect is it having, if any? Determine what affect will an increased M1 money supply have in the long run?
The setup activity price driver rate, using the best cost driver for this situation.
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A Federal Reserve Bank has recruited the economic consulting firm to prepare a paper on how the use of money has changed over the past 20 years.
Elucidate the organization/industry reduce production or shutdown their operations? Explain your reasoning.
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