Supppose that the federal budget is initially in balance, with spending, G, equal to taxes, T.?

Let me answer the later, it's too late. It's a Catch-22 situation. The best way to alleviate unemployment is to give business tax breaks. Can't do that with the national budge approaching the level of GDP. We could gamble by digging ourselves deeper into a fiscal hole, where our federal budge will surp GDP just like Greece, and hope we could stimulate growth. Nonetheless the FEAR FACTOR is alive on Wall Street. The daily volume of trading is anemic because of uncertainity. Fear (bears) are kicking those poor greed mongers (bulls) around. The street is an ugly corner of life today with loads of uncertainty.