Will Economic Stimulus Save the Economy? (COVID-19)

The video discusses the CARES Act, a significant economic relief bill in response to COVID-19, and explores the roles of monetary and fiscal policy in economic crises. It reviews historical examples of fiscal stimulus, such as the New Deal, TARP, and ARA, and their impacts. The video also examines global fiscal responses to the 2020 crisis and the implications of rising national debt. It concludes by evaluating the effectiveness of economic stimulus measures and the potential consequences for future economic growth.

What is the primary purpose of the CARES Act?

• To provide economic relief during COVID-19

• To increase taxes

• To promote international trade

• To reduce government spending

Which policy involves a government central bank creating more money?

• Fiscal policy

• Trade policy

• Monetary policy

• Environmental policy

What was the main goal of the New Deal in the 1930s?

• To increase military spending

• To build infrastructure and create jobs

• To promote international trade

• To reduce taxes

What was a criticism of the 9/11 airline bailout?

• It was too small to be effective

• It rewarded reckless companies

• It led to increased unemployment

• It caused inflation

How did the ARA aim to help the economy?

• By cutting government spending

• By providing temporary relief and increasing infrastructure spending

• By promoting international trade

• By reducing taxes

Which country had the largest fiscal stimulus in response to the 2020 crisis?

• Italy

• India

• Germany

• United States

What is a potential consequence of high national debt?

• Higher employment rates

• Lower interest rates

• Crushed economic growth under debt payments

• Increased economic growth