you decide Essay

Submitted By baptist7
Words: 346
Pages: 2

Mr. le president,
The United States actual situation needs the federal government direct input to recover its economy. The government will have to consider the expansionary policy and other fiscal policy tools with an eye in monetary policy to fully handle the downturn of our economy which means the government has to focus on fiscal policy most important at the time and not neglect monetary policy because it can give some incentives. The details of my recommendations and the pros and cons of what you might consider about our crisis are as follow. The actual state of the economy needs a bit stimulus from the government by its spending and the Fed’s increasing the money supply. Investors will put forth in their investment if interests rates are lower not the opposite as I was told. Because higher interest rate increases unemployment rate as businesses are unable to employ the labor force. However, as the president does not have full control of the Fed’s actions it is recommended that he focuses on what he has in hand for immediate remedy. Again the government’s spending but in necessary needs and transfer payment to stimulate aggregate demand will make an increase in Real GDP. These are weapons for the actual battle. In turn our population will again be able to afford their needs in spending themselves and contribute to our recovery. We recommend fiscal policy at this time because monetary policy has shown its limits in a situation where not only the neighbor has lost his…