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Week 5 You Decide

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You Decide Opinion

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Business Economics

Dear Mr. President,
I have discussed the current economic recession with our policy experts over the issues of 8% unemployment and the -2.4 inflation rates. In order to pull out of the recession earlier than the estimated year and get people back to work, get production up and prices stable the below is my recommendation on what I feel is the best way to get the country back on its feet.
First, I recommend that we expand the fiscal policy by working with Congress to decrease government spending and lower taxes to get buying and production going, this would also help to stabilize prices but would put money into of the pockets of those that need it. This would give citizens the ability to save as well as show the government is serious about cutting spending and allow growth while controlling spending.
Second, I recommend the FED should increase its money supply of money by buying bonds and lowering interest rates slightly and look to raise the reserve requirement. This Monetary Policy would allow banks to stabilize their reserves and have more money to invest and loan to customers. This would help in creating more jobs as well as cut the -2.4 inflation rate we see today buy infusing money into the current markets.
I have taken the middle road as my colleagues have differing opinions. In this time of inflation and joblessness by lowering taxes and cutting spending while having a discretionary fiscal policy we can bring the -2.4 inflation rate down and transfer wealth from those that have it to those that need

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