In March 2020, the US Congress has approved a 2 Trillion dollar stimulus package to fight the spread of COVID-19 and to prevent the economic impact of the coronavirus pandemic. Moreover, the FEDERAL RESERVE BANK has also cut the federal find rate by a total of 1.5 percent points since March 3, that brings it down to a range of 0 to 0.25 percent.
give your analytical response for the following questions:
- How does the stimulus package of 2 Trillion dollar will prevent the devastation of the economy?
- How households, firms, and financial institutions will benefit from this stimulus package?
- What are the objectives of decreasing the federal fund rate?
- How the new fund rate will assist the US effort to prevent economy collapse?
- What are the PROS and CONS of the above mentioned fiscal and monetary policies?
- Who are the gainers and losers of such fiscal and monetary policies?
- What is your general personal opinion (in support or against) of these fiscal and monetary policies?