Here’s your economics quiz for the day:
Question 1 – What do you think would happen if you put $3 trillion into the financial system?
a – Stock prices would rise
b – Stock prices would fall
c – Stock prices would stay the same
Question 2 – What do you think would happen if you put $3 trillion into the economy? (Via fiscal stimulus for infrastructure projects, extended unemployment benefits, food stamps, etc)
a – Activity would increase and the economy would grow
b – Activity would slow and the economy would shrink
c – Activity would stay the same, so growth would remain unchanged
If you picked ‘a’ for both questions, then pat yourself on the back because you got the right answers.
This post was published at Zero Hedge on Oct 1, 2016.