Answer the following questions: Limit is one page single spaced for each questio

Question

Answer the following questions: Limit is one page single spaced for each question. 1) The Federal Reserve increased the interest rate for the first time in nearly a decade in December 2015. Explain how the interest rate would likely affect you and the business where you are currently employed (or would like to be employed). Explain your answer using the theories presented. 2) List the major steps your local government has taken (or is taking) to improve the business environment. What are some of the policies that have stifled business development in your locality? 3) List a few major challenges YOU THINK would impact the future economic well-being of the United States. Explain how these national-level challenges can impact on local businesses in your locality.

Explanation / Answer

Fed has risen the interest rate by 0.25% in December 2015,

The business environment in United States in general is very difficult now, the rise in the interest rate has affected borrowing costs for the company. Which led to stop in further investment in upgradation of existing plant. This has also led to reduced employment oppurtunities in our region

2) The major problem in our locality was lack of demand from the population, Stores no longer were making any profit and government has taken action by launching amusement park in the region, This has helped everyone in our area to get better revenues, Government was able to give free land and tax incentives to investors of the park, It also gave water rights to the park.

3) Our national interest rates are already record low, That means we have already taken action on the monetary supply side, Even with so much money supply investment is not picking up, This is a very serious problem. US already has a very low yield on investments so further investment in any project is highly unlikely.

On the other side we still are reeling under relatively very slow economic growth and virtually decade long recession which started in 2008, We are officially out of recession but economic growth have just not picked up, confusing policy makers and government.

We lack supply chain now that used to exist just few decades ago, We have shifted most of our manufacturing jobs to China. This will have long term problems to economy

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