[ORDER SOLUTION] Interest and Inflation Rate
Based on my outline, you will initiate work on the first draft of my paper. While the draft is not expected to include all of the points that you will have in your final paper, it must provide enough detail so that the general scope and depth of the final paper is clear. Your final paper must be at least 1,800 words and include six or more credible sources. Two of your sources must be from academic journals. Your first draft must include the following four sections: An introduction that introduces the selected topic and discusses how the analysis was conducted. A literature review that provides a detailed summary of the economic circumstances and facts that serve as the foundation of the economic analysis. A narrative body that includes: An economic analysis that uses the tools developed in the course along with your graphical depiction of the economics applied to your topic. Provide an explanation of the graphical analysis. Don’t leave it to the reader to figure out your intention. The specific analysis will depend on your chosen topic. Statistics that support your topic and narrative. Conclusion and a brief summary.Thesis: There is a direct relationship between the Inflation rate and interest rate levels an aspect that further influences the rate of economic growth. Introduction Definition of basic terms; Interest and Inflation rate and how they relate to each other and the general economic growth. The main stakeholders are directly involved in the control of the interest rates and the inflation rate. Thesis Statement; There is a direct relationship between the Inflation rate and interest rate levels an aspect that further influences the rate of economic growth: Body Paragraph 1.Types of Inflation. The impact they have on the economy. Temporary and underlying Inflation: Body Paragraph 2: Factors that lead to changes in Interest rates and Inflation. Some of the factors; unemployment, Economic growth rate, Commodity prices, Wage inflation and Exchange rate. Body Paragraph 3: Correlation between Interest Rate and Inflations.The reason for the inverse correlation and the general impact on the economy. Body Paragraph 4 The role of the Federal Reserve in controlling the Inflation and the Interest Rate. Responses it makes to either falling or rising Inflation. The real interest rates and the impact it has on the borrowers and savers.Body Paragraph 5: Relationships of the interest rates adjustment and economic growth. A global perspective on the issue especially when there is a crisis: Body Paragraph 6 Reasons why the change of interest rates may not directly translate to the desired economic growth.The dilemmas that the Federal Reserve and central banks globally face in relation to the interest rates and Inflation due to the impact it has on the general economic growth. Conclusion: Restating the thesis, Summary of the arguments developed.