Critique free essay sample

Statement of the problem/obJectives c. Significance of the study e. Review of related literature Methodology a. Materials/equipment b. Treatment/general procedure Result and Discussion Conclusions Recommendations historical approach to the development of physical theories and technologic dvances is adopted to highlight the humanistic aspect of science. In many instan evolution of concepts, principles and theories is described to make you aware oft contributions of some great physicists and technologists in pushing forward the frontiers of knowledge. Physics is the branch of science that deals with the interaction between matte and energy. Understanding of its basic principles enhance your daily life and the application of physics principles pave the way to development. Life situations wh these physical theories meaningful. Technological devices are presented to keep abreast with advances in science and technology. These will help people to cope the demands of the knowledge based society of the century. Internet is a big help for those people who wants to gather knowledge in physi in a more convenient and easy way. Aggregate production and expenditures as part of the Multiplier Model were not comfortable subjects for most of us. One team member helped by describing bank deposits and loans as money multipliers. Someone deposits money in their bank account and receives a printout that states how much in the account. The person is allowed to get the money back on demand. However, the bank is allowed to borrow out 90% of that money, only holding 10% in reserve. That 90% is where the money begins multiplying because more money will be in the economy, and more money will come back to the bank. Here is the formula that is used to show how this works: 1/r = 1/. 10 = 10 Simple money multiplier If the reserve rate is too high, then the money multiplier is smaller and less money will be created. In 2008, banks became afraid the loans were not safe and kept the excess reserves, which crushed the money multiplier. Here is another formula that is used to figure out the money multiplier for the economy: (1 + c) / (r + c) r = the percentage held in reserve c = the money held by the people The more money people hold, the smaller the money multiplier. Another member explained that the Multiplier Effect can be defined as the expansion of a countrys monetary supply that has resulted from banks being able to lend. The size of the multiplier effect actually depends on the percentage of deposits that banks are required to hold as reserves. Money is used to create more money. This is calculated by dividing total bank deposits by the reserve requirement. Another of the objectives this week was to assess the factors that contribute to the establishment of general and specific rates of interest. Quite a few factors determine general and specific interest rates. For example, the Federal Reserve raises or lowers short-term interest rates in effort to maintain a stable economy. In addition, interest rates are strongly influenced by the state or condition of our economy and the supply and demand for credit. When the demands for funds are high, interest rates will rise and put a ceiling on the funds that are available. Lastly, inflation also affects rates of interest. The higher rate of inflation, the more interest rates have a tendency of rising. The material in week three was a little hard for most of us to comprehend at first. However, after going over the material a few times, and participating in discussions, it was a little clearer. Now, as one team member suggests, we can use the information to help understand how 401k and bonds are affected when interest rate is either lowered or increased. We can apply this information to our borrowing habits. We can make better decisions by understanding the state of our economy and how the Federal Reserve will affect our investments.