ECO 202 Monetary System 4-2 Discussion Paper

ECO 202 Monetary System 4-2 Discussion Paper

ECO 202 Monetary System 4-2 Discussion Paper

How Changes to the Federal Funds Rate Affect the Unemployment Rate
The federal funds rate connotes the short-term interest rate charged between banks for loans (Mankiw, 2021). The federal funds rate is controlled by loan supply and demand in the market. This rate is influenced by the open market operations. The injection of reserves in the banking system reduces the essence of borrowing by the bank, which leads to the reduction of the federal funds rate (Mankiw, 2021). Usually, the components of financial systems are closely related and so, any changes in the federal funds rate automatically change other interest rates in a similar direction. The variation in the interest rates in any direction affects the supply of money. This rate increase discourages banks from borrowing money from other banks at elevated rates due to the higher costs of such borrowing. In turn, this reduces the money banks allocate for lending (Mankiw, 2021). The scarcity of money banks allocates for lending causes an increase in interest rates for traders and consumers borrowing from banks. This leads to a reduction in investment back to the market. The reduction in money to invest in the market causes a reduction in the need for labor (Mankiw, 2021). If this scenario continues, many people are driven out of employment in the market.

ORDER A CUSTOM PAPER NOW

How Changes to the Federal Funds Rate Affect the Inflation Rate
Inflation refers to the elevation in the entire price level in the economy (Mankiw, 2021). Federal funds rates are closely connected to interest rates. The increase and reduction in the interest rates manipulate the money supply and the monetary supply influences prices. The increase in the supply of money lowers the value of money and elevates the prices. The increase in prices increases inflation (Mankiw, 2021). On the other hand, a reduction in monetary supply elevates the monetary values and reduces the prices. The reduction in prices reduces inflation (Mankiw, 2021). When inflation is low, the interest rates are reduced by Federal Reserve to kindle the economy.

References
Mankiw, N. G. (2021). Principles of economics (9th ed.). Cengage Learning.

ORDER A PLAGIARISM-FREE PAPER HERE

Week 5 Case Study

Students in their first graduate level pharmacology course are confused with the recommendations for hypertension (HTN) and treatment choices after ST-elevation myocardial infarction (STEMI) and with heart failure (HF). The drugs used several years ago and still seen commonly on the acute care floors the students work are not the ones now assuming a stronger role in cardiac health issues. For one, the primary order of which meds are selected for an initial level of blood pressure control has seemed to change.

Help your fellow students by explaining the following changes.

Which classification of drugs has taken the first-choice role in most patients with early hypertension? Is it wrong to select a thiazide diuretic or a beta blocker as was once done?

Is there another primary choice for African American patients? Why?