Question
Supposed the U.S Economy is in a recession A. Identify two discretionary fiscal policy solutions Congress could implement and explain how each would correct the
Supposed the U.S Economy is in a recession
A. Identify two discretionary fiscal policy solutions Congress could implement and explain how each would correct the problem.
B. Explain how the solutions in part A could cause crowding out.
C. Draw and label a graph of the loanable funds market to illustrate your response in part B.
D. The Federal Reserve also conducts open market operations to combat the recession. Explain the steps in how open market operations affect the recessionary gap.
E. Explain how the fiscal policy in part A and the monetary policy in part D differ in their effects on long-term growth.
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