In 2001, President George W. Bush and Federal Reserve Chairman
Alan Greenspan were both concerned about a sluggish U.S. economy.
They also were concerned about the large U.S. current account
deficit. To help stimulate the economy, President Bush proposed a
tax cut, while the Fed had been increasing U.S. money supply.
Compare the effects of these two policies in terms of their
implications for the current account. If policy makers are
concerned about the current account deficit, discuss whether
stimulatory...