Discussion on Fisscal and Monetary Policies
Suppose that in year 2025, the US economy enters once of its worst recessionary gaps in history. Address these two related questions below:
- Compare and contrasts how fiscal policy and monetary policy could be used to help address this economic downturn. Explain.
- The US government is currently trillions of dollars in debt. If economists view reducing this debt to be critically important, do you think fiscal or monetary policy is a better response to the economic downturn? Explain.
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