Mr.

President, Exercising Expansionary Fiscal and Expansionary Monetary policy is the best in current situation for increasing Aggregate Demand. Increasing Government spending to make use of multiplier factor, reducing tax rate from fiscal policy side which increases disposable income and buying bonds, and reducing bank reserve will stimulate the economy by making more money available for banks for giving out loans. Businesses will embrace newer frontiers with the availability of low cost loans. I partially agree with Raymond Burke on exercising fiscal and monetary policies but reducing interest rates would decrease the foreign investment in US and eventually depreciation of US exchange rate, which would be a huge impact on deficit in current situation. I completely disagree with Kathy Lee. Raising taxes and reducing government spending are contractionary policies and better used to control inflation. By increasing taxes disposable income will be less and people would not be spending money and that reduces aggregate demand. Current situation is not controlling inflation but to increase aggregate demand by means of increasing spending and stimulating economy. I partially agree with Patricia Lopez. Selling bonds is a good way to pump money into system but raising bank reserve is not a good option at this time as itll reduce the total money available to banks for giving out loans. Not changing interest rates is a good idea which will not put us in liquidity trap situation. I agree with Allison Tanney. Exercising expansionary fiscal and expansionary monetary policy is the best in current time except the interest rates. Raising interest rate need to be exercised carefully after little improvement in economy but in the current situation direct and quick impact would be with government spending and reducing taxes.