Macroeconomic Impact on Business Operations Shanda Brown University of Phoenix Macroeconomic Impact on Business Operations There are several macroeconomic factors that take part in the impact on business operations. As the economy goes through its business cycles it is important that measures are taken to keep these factors stabilized and at a level beneficial to the economy. The Federal Reserve achieves this by conducting monetary policy that controls the money supply in order to influence interest rates and thus the total level of spending in the economy. Specifically, the goal is to achieve and maintain price-level stability, full employment, and economic growth (McConnell & Brue, 2004). Before discussing how money supply is controlled, it is important to understand how it is created. First of all, the United States has a fractional reserve banking system in which only a fraction of the total money supply is held in reserve as currency. All commercial banks that provide checkable deposits must by law keep required reserves that ar......

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