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Policy in times of severe recession

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Q1. If the economy is in a recession, compare an expansionary monetary policy by the Fed to increase spending in the economy with an expansionary fiscal policy to increase spending. Which one would be favored by a person who thinks that government is too big and why? (1 para graph)

Q2. If government was obligated by law to balance the federal budget every year, then it would mean having to use contractionary fiscal policy in times of severe recession. How would you explain this ? (1 para graph)

Reference no: EM131668893

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