Question

Name explain and give an example of two arguments one in favor of the feds credit policy and one against the policy

Answer 1

Fed's credit policy has often taken economy out of depression. As after financial crisis fed pumped enough liquidity, reduced interest rates to almost 0%level thus preventing large scale failure of banking system which happened during great depression and so on.

The argument against Fed's policy is that it has been used too much in recent years whereas fiscal policy was neglected. This policy doesn't correct real variables in the longrun according to its greatest proponents like monetarists. On the other hand fiscal policy can influence real supply and is solution for containing inflation in long run for example