Question

To what extent should government influence the economy of a democracy such as the United States? Support your position with concepts from the readings.

Answer 1

Answer: Quality monetary policy.

Explanation:

• After the Great Depression of 1929, there was a real danger of economic dubiousness in the US economy. The government has learned some lessons from that episode. Authorities have taken several steps to prevent the country from reaching a similar position in the future. The government has stimulated the economy. In a situation of the danger of economic crisis, the government cuts taxes in the country. In this way, it encourages higher consumption among the population, which is a stabilizing factor for the economy.

• The government is trying to reduce inflation with its revenues. The Federal Reserve Board manages that policy. The anti-trust law should be mentioned in addition to the mechanism. In doing so, it seeks to challenge the formation of unrealistic competition that may pose a threat to small and medium-sized enterprises. Technological advancement is also an essential factor, and the government supports the availability of these technologies, and widespread availability and market availability is one of the vital regulations of US monetary policy.