Problem
Suppose a fall in net exports due to a recession among our major trading partners causes a recession in the United States.
(a) If fiscal policy is used to stimulate the economy and return it to full employment, what happens to the real interest rate, investment, and future output?
(b) If monetary policy is used to stimulate the economy and return it to full employment, what happens to the real interest rate, investment, and future output?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.