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You Decide Keller Gm545

In: Business and Management

Submitted By raymcgeisey
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You Decide: I do agree with Raymond Burke. Lowering interest rates further could help businesses and consumers get back on their feet. Lowering the interest rates will allow for current business owners to get new loans to expand their business, even open new warehouses or shops. This will also allow for the current business owner to higher more employees, which means less people on unemployment. Lowering the interest rates will also allow for the future business owner to get a loan to start their new business. This will also allow for more people to get employed and off unemployment. With less people on unemployment and more people working, more people will be able to have extra spending money which will in-turn help boost the economy. I do not agree with Kathy Lee, raising taxes will decrease the amount of consumer spending and reducing government spending together will lower the GDP. Lowering the GDP would defeat the purpose of trying to strengthen the economy. I also do not agree with Patricia Lopez. Raising the bank reserve requirement will not increase the money supply, but it will decrease it as the banks will have less lendable spendable money. It may make the banks more stable having more of the customers' deposits, but if they are unable to lend that money, it will not flow through the economy to help strengthen it. Allison Tanney brings up a good point of increasing government spending and lowering taxes. The only problem I see with this is with lowering taxes, increasing government spending would require the US to borrow more money and increase the deficit. Lowering taxes would mean more money for the consumer to spend and increasing government spending together would increase the GDP, which in-turn would help stimulate the economy. Over all, I would have to agree with Raymond Burke the most as his idea would have the most impact on the economy. It may take some time for the results to show, but in time more people will be employed and will have the extra spending money to help strengthen the econemy.

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