Economics

A country’s standard of living depends on its ability to produce goods and services 4. Prices rise when the government prints too much money 5. Markets are usually a good way to organize economic activity U.S. GDP grew at an annual rate of 3.2% (seasonally adjusted) in the last quarter of 2013. Inflation rose at an annualized rate of 0.7%. U.S. trade exports improved significantly in the last quarter of 2013, the most in over three years.

Starting from 2008 to 2013, the Fed started to use quantitative easing to boost the US economy from the economic crisis. In November 2008, the first stage of quantitative easing was initiated. The Fed had purchased $1.7 trillion dollars worth bonds and securities from commercial banks and private institutions. [1] It means that the Fed had increased the monetary base by $1.7 trillion dollars. The effect of the fist stage of quantitative easing would be significant, because by putting $1.7 trillion dollars into ... ... middle of paper ... ...cy.

(27 March 2013-8 January 2014 ). GDP deflators at market prices, and money GDP: December 2013. Available: https://www.gov.uk/government/statistics/gdp-deflators-at-market-prices-and-money-gdp-march-2013. Last accessed 2/12/2014. Office for National Statistics.

Google Books. 26 Aug. 2013. Cambridge University Press. 15 Jan. 2014. Whitaker, Eric A., Mitchel N. Herian, Christopher W. Larimer, Michael Lang, "The Determinants Of Policy Introduction And Bill Adoption: Examining Minimum Wage Increases In The American States, 1997-2006."

(7) The Economist (2013). Sovereign doubts. [ONLINE] Available at: http://www.economist.com/news/schools-brief/21586802-fourth-our-series-articles-financial-crisis-looks-surge-public. [Last Accessed 05 February 2014]. (2) U.S. Department of the Treasury, Bureau of the Public Debt (treasury.gov).

Quarterly investment commentary. Comerica The Road Ahead. Retrieved from: http://www.comerica.com/wealth-management/Documents/Wealth%20Weekly%20Updates/2014/The_Road_Ahead.pdf Mankiw, G. (2012) Principles of Macroeconomics. Mason, OH: South-Western Cengage Learning. ISBN-13: 9780538453066 Sanabria, D. (2014).

Retrieved November 29, 2013, from http://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD World Bank. (2013). Poverty headcount ratio at $2 a day. Retrieved November 29, 2013, from http://data.worldbank.org/indicator/SI.POV.2DAY/countries

The United States is the leading economy across the globe and experienced several tribulations in the recent past following the 2008 global recession. Despite these recent challenges, there are expectations among policymakers and financial experts that the country will experience solid economic growth. Actually, financial analysts have stated that the U.S. economy will be characterized by increased consumer spending, increased investments by businesses, reduced rate of unemployment, and reduction in government cut. Some analysts have also stated that the country’s economy will strengthen in 2014 with an average of 2.7 percent or more. However, these predictions can only be understood through an analysis of the current macroeconomic situation in the United States.

Retrieved January 20, 2014, from Bright Hub: http://www.brighthub.com/money/personal-finance/articles/18345.aspx Macabacus. (2014). Retrieved January 20, 2014, from http://macabacus.com/valuation/dcf/overview Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2011). Essentials of Coporate Finance (7th ed.). New York, New York, US: McGraw-Hill/Irwin.

Forexbees: Retrieved November 20, 2013 from http://www.forexbees.com/fixed-exchange-rate-against-the-flexible-exchange-rate/ Hill, C.W.L. (2014). Global Business Today (8th ed.). New York, NY: McGraw-Hill Irwin International Monetary Fund. (2013).