Direct effects of increased money and spending

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1. Do you think that monetary policy works better through the indirect effect of low interest rates or better through the direct effects of increased money and spending?

2. Can the government cause a recession and then limit the strength and speed of the economic recovery by trying to redistribute income on the basis of fairness?

3. According to the President's economic advisors, the US could have borrowed and spent more money on fiscal stimulus without hurting the economy. And, after all, our annual deficits have declined somewhat. Considering the world your children will inheret, do you think additional deficit financed fiscal stimulus is a good idea?

Reference no: EM131112599

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