Cowen states the Federal Reserves obtains its powers through its ability to issue money. (Cowen, 2021). Coke manages the effects of monetary policy set by the US Federal Reserve Bank. There are three methods the Federal Reserves utilizes to control monetary value: discount rate, open market operations, and the reserve ratio requirement. Regardless of the effect of the Federal Funds Rate, Coke retails their product by the truck load. Coca-Cola reports net revenues grew 16% to 10.5 billion, and organic revenues grew 18%. Coke’s earnings per share reportedly grew 23% to $0.64 and comparable EPS grew 16% to $0.64. The cash flow operations were approximately $620 million, a decline of $1 billion verses last year. (The Coca-Cola Company, 2022).
The fiscal policy is determined by the executive branch and the legislative branch and uses the policy to influence the economy by adjusting the revenue and spending levels (Kuligowski, 2021). To increase the GDP and aggregate demand, fiscal policy affects three measurements, business tax policy, government spending, and individual taxes (Kuligowski, 2021).
In 2021, Coca-Cola updated its tax policy in compliance with the duty imposed under paragraph 19(2) of Schedule 19 to the Financial Act 2016 and in relation to the accounting period ending December 31, 2021. Due to the pandemic, Coca-Cola had to adjust its business as many consumers stayed home. (The Coca Cola Company, 2021).
References:
Cowen, T. 2021. Modern Principles of Economics.
Kuligowski, K. 2021. What is Fiscal Policy. Retrieved from. https://www.businessnewsdaily.com/3484-fiscal-policy.html
The Coca-Cola Company. 2022. Our Company. Retrieved from. https://www.coca-colacompany.com/company