Sign In Sign Up Ask an AI advisor
jadentdaniels
jadentdaniels
11.05.2021 • 
Business

Assume that as a result of the coronavirus and U.S.​ (Federal) Government policies to ameliorate or lessen the​ virus’ public health​ impact, the U.S. unemployment increases from​ 3.6% to​ 13.7% by​ May, 2020. As part of monetary and fiscal​ policies, however, beginning in the summer of 2020 the Fed purchases over​ $3.5 Trillion in U.S. government bonds and Federal Government transfers​ $5,000 to every U.S. adult over 18 years old​ (not in​ college…. sorry) financed by government debt. ​ Then, as a part of its overall public health​ policies, the U.S. government begins to relax or loosen its previous travel and​ "shutter in" policies in the Spring 2021 so that people can now go to​ restaurants, movies or sporting events and the like more freely. Absent increases in the United States long run aggregate​ supply, the combined economic effects of such policies would most likely​ be: A. Lower interest rates. B. Higher unemployment rates consistent with the crowding out effect. C. Lower GDP growth. D. Higher rates of inflation.

Solved
Show answers

Ask an AI advisor a question

I want advice