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Actions to boost the world economy

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The latest economic news was not very positive. Unemployment rates were higher than expected, consumer confidence had fallen, and companies were reporting layoffs were in order. The Federal Reserve chairman acknowledged the economy was in a recession. What actions might the federal government take to give the world's economy a boost? What is this policy called? What actions might the Federal Reserve take? What is this policy called?

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Solution Summary

The response provides you a structured explanation of how the economy is in a recession and the steps being taken to improve it . It also gives you the relevant references.

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The federal government may take several steps to give the economy a boost. The steps are that the federal government should increase its spending so that there is increase in demand. This spending should be done on infrastructure. This will directly increase employment and the increased demand will reduce unemployment. Greater economic activity will lift consumer confidence. In addition, the federal ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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