Evaluate the following statement: "if we increase the money supply we can lower unemployment."

Kind of late to be doing homework, isn't it?

Compare it to the flip side - supposing you rewrote it "If we decrease money supply, we will increase unemployment". That is 100% true.

No exactly! Just stuck on those question by undersanding. .do not how to answer it..

It is the sort of pie-in-the-sky simplistic outlook I expect from the farthest fringes of the left wing. It completely ignores most of the human factors that led to the high unemployment rate.

>Jobs are not created just because an employer has enough money to hire more employees. Jobs are created when an employer needs more employees. so what... you're saying that reducing the employer's income taxes is not going to inspire him to create jobs? It's going to take producing enough customer base to require him to expand his capacity? be careful, that's liberal talk.

Printing more doesn't increase the total value of the economy, it is good short term solution (especially to cover debt). Like the Federal Interest Rate, someone must take responsibly and decrease paper when things get better.

If a government increases the money supply, it institutes inflation, which raises prices, which makes EVERYTHING more difficult for those who are not employed (i.e., not getting any of that money.) To your question, the one who owns a factory will be unwilling to spend money on equipment in an inflationary period because that equipment will be too expensive--over-priced, actually. As he won't expand his business, employment won't expand, either. And Germany between WWI and the Nazi government did exactly this, and it solved nothing.