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I need help with this econ quotes analysis in 6 sent. Economic theory posits that expansionary monetary and fiscal policy will increase the aggregate demand
I need help with this econ quotes analysis in 6 sent.
Economic theory posits that expansionary monetary and fiscal policy will increase the aggregate demand to close a recessionary gap. From one of your readings this week, Putnam (2020) writes: "The U.S. federal government and the Federal Reserve have moved at a rapid pace to provide massive economic support to the U.S. economy as it deals with the economic damage from the Covid-19 global pandemic...... Consumers will save more and spend less than before, as they seek to repair their damaged financial conditions. Companies will need to conserve their precious cash, making for very cautious re-starts of their businesses... Unfortunately, the rebuilding phase may take considerable time, the pace of growth may be much slower than many hope, and more federal programs may well be on the way!' Initial Discussion Post: 1. Comment on the role of consumer spending and the multiplier effect. 2. Given the likely increased consumer saving, do you think fiscal or monetary policy will be more useful in stimulating the current U.S. economy?
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