...Keller Graduate School of Management Business Economics GM545 Online Graduate Course Summer Session A, July 2010 You Decide 14 August 2010 The deep recession that we have found ourselves experiencing in this example doesn’t deviate far from our current economic situation as we stand as a nation today. With economic analysts predicting that recessionary conditions may persist for at least another year, the economy requires some government intervention to put it back on track. With prices falling and unemployment rising, a combination of both monetary and fiscal policy will be needed in order to bring the nation out of this severe recession. Prices are falling, with the inflationary rate at -2.4%, making it evident that both businesses and individuals are not spending and overall aggregate demand (AD) is falling. The Economic Consultant to the President, Mr. Raymond Burke, has recommended that the President lower interest rates to further help businesses and consumers “get back on their feet.” There are some inaccuracies in what Mr. Burke is recommending. The President has neither the ability nor the authority to make adjustments to interest rates. The Federal Reserve (the Fed) is responsible for the discount rate and for setting the reserve requirements. I do not agree with Ms. Patricia Lopez’s (Consultant to the Federal Reserve) recommendation to leave interest rates alone, sell bonds and raise the bank reserve. Raising the bank reserve will discourage banks from lending...
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...Channel Challenges - Channel Microsystems Keller Graduate School of Management Devry University Channels of Distribution What are the pros and cons of choosing this distributor? When selecting a channel partner, SPEAR, an acronym that describes important selection criteria, is often used to target the best candidate during a selection process. Aridi Graphics should evaluate each of the components of SPEAR in selecting a Western Europe distributor. The first element of SPEAR outlines the importance of selecting an intermediary who is knowledgeable of the Sales environment. In this case, the candidate identified at the MacWorld exposition is an ideal intermediary from a geographic perspective. This candidate has knowledge of the Western Europe geography as well as cultural factors that may impact software sales in the region. This knowledge may benefit Aridi through rapid market penetration and reduced start up cost. The next component of SPEAR, Product factors describes the level of knowledge that the intermediary may have with regards to the product and its sales requirements. The information provided in the channel challenge informs us that Aridi met this individual during the MacWorld exposition which indicates common industry interest. It’s important that during the interview process questions are posed to address and confirm the prospects level of product knowledge about the software solution, its competitors and advantages/disadvantages. This area...
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...Keller Graduate School of Management GM545- Business Economics Professor McLean February 13, 2012 YOU DECIDE SOLUTION The economy is needs a little help from the government but they also need to have strong and prominent monetary policies. For this situation, I agree with Allison Tanney, the President should work with Congress to increase government spending and the Federal Reserve should increase the money the money supply. By doing one or the other, you are only doing half the job. If government spending were to increase it would help to stimulate the economy. In addition, lowering interest rate would encourage firms to increase investment. This would also aid increase consumption because now people with mortgages and debt can purchase homes, consolidate debt or even keep from homes being foreclosed. Raymond Burke stated that the President should lower interest rates further to help business but the President does not control short-term interest rates, it depends on what the Federal Reserve wants to do. Therefore his option would not work. The US economy is coming out of the most severe recession since the Great Depression and the economy needs as much support as it can possibly get. This will involve both monetary policies and fiscal policies. The economy needs direct stimulus from the government since monetary policy can only provide incentives to firms and households to spend, not actually increase spending. If the government decides to increase spending that will...
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