Analyze each macroeconomic model discussed in Chapter 13 to determine which model you believe is viable across the greatest number of economic situations. Explain your rationale.
In 2001, the U.S. government mailed rebate checks in the amount of $300 or $600 to many households. Discuss what would happen if the U.S. government did the same thing today. Would households spend the extra income or use it to pay down debts? State what effect either action would have on the economy.