Assignment task: According to census data, in 2013 about 14.5% of families in the United States of America were poor (USA Census Bureau, 2014). Suppose someone comes up with the idea of asking the government to produce more money and that new money be distributed to families living in poverty. The person who came up with the "brilliant idea" asks you a series of questions:
Q1. Which government institution can make the most money?
Q2. How does it make it?
Q3. What impact does a larger money supply have on inflation?
Q4. Why didn't anyone come up with this idea before?
Q5. Do you agree that this is a good idea? Why or why not?