Monetary & Fiscal Policy, The Macropolish President

Monetary & Fiscal Policy
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Macropoland is currently experiencing a recession--consumption and investment are very sluggish, and unemployment is quite high at 9%. Currently, inflation is very low at 0.4% (the historical average rate of inflation is about 2%). The Macropolish President has just hired you as her economic advisor. Your job is to prescribe policy that would enable the economy to recover from the recession. Explain how you could use the standard tools of expansionary monetary policy and expansionary fiscal policy to stimulate this economy towards economic growth.
Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience. Organize your response in a clear and logical manner as appropriate for the genre of writing. Use well-structured sentences, audience-appropriate language, and correct conventions of standard American English.\\
Since Macropoland is facing high unemployment at 9% and low inflation at 0.4% expansionary monetary and fiscal policies are required to boost the economy. Expansionary monetary policies are associated with increase in the money supply, which boosts the economy and at lower interest rate. Fiscal policy involves taxation and public spending, and expansionary fiscal policies are lower taxes revenue and increased expenditure, which boost economy. The other option is cutting spending and boosting the tax revenue. Since the economy is under recession there is weak output, high unemployment and low expenditures, and this is complicated by the low interest rates since this discourages investment because of expectations that people will pay a cheaper price in future. Monetary and fiscal policies will be necessary.
Lowering the interest rate is an expansionary monetary policy that encourages the borrowers to seek more funds because of the low cost of borrowing. The interest payments are lower when the interest rates are low where consumers and businesses borrow more. If the businesses borrow and invest, this will spur growth and they are better placed to hire more workers. This will then reduce the unemployment levels and the workers further spend money, and since consumer expenditure one compo...