Macro and Micro Economic Influences on OASI Trust Fund

Topic 

Macro and Micro Economic Influences on OASI Trust Fund

Instructions 

Students will write a 2-page paper on the macro and microeconomic influences impacting the creation, development, and sustaining of their chosen Social Welfare Policy Analysis Topic. The Final paper is worth 25 points and this paper will be worth 2 points of that total.

Answer Preview 

The inflation rate is one of the key macroeconomic influences that demand alterations to the OASI trust fund. The inflation rate refers to the rate of annual growth in the Consumer Price Index (CPI) for clerical workers and urban wage earners. High inflation rates mean that the money invested by the OASI will have higher returns (Butler, 2012). This is because during a period of inflation the government implements policies that increase interest rates, while reduced inflation rates induce low-interest rates. Higher interest rates translate to higher earnings from the amount invested, and the opposite is true. Therefore, the OASI Trust Fund emplaces appropriate policies with regards to the inflation rates. The policies dictate whether the trust fund should increase or decrease its investment.

Word Count: 800