What action could government take to stimulate the economy

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“The federal government will be prevented by the size of the deficit from taking any action to stimulate the economy. The only possible source of stimulus is a decrease in the personal savings rate, he said.” a) Ignoring the deficit problem, what action could the government take to stimulate the economy? Explain why the size of the deficit may prevent this. b)How would a decrease in the personal savings rate serve as a source of stimulus?

Reference no: EM13886780

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