Running head: Macroeconomic Impact on Business Operations Macroeconomic Impact on Business Operations In the United States of America, the Federal Reserve System (the Fed) has an almost absolute control over the economy of the United States. The Fed has the ability to affect numerous economic factors such as Gross Domestic Product (GDP), unemployment and interest rates. In addition the Fed can essentially produce money and essentially put this money into circulation into the United States economy and eventually the international economy. In addition the Federal Reserve System has the ability to control the monetary policy to result in satisfactory economic growth, low inflation, as well as resulting in an acceptable unemployment rate. According to McConnell and Brue (2005), The United States money supply consists of currency (Federal Reserve notes and coins) and checkable deposits. In addition to this the United States creates money. The way the United States Federal Reserve System creates money is as a result of granting loans. By granting loans banks essentially......

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