How to respond to a query about Jesus–whether he is a liar, a lunatic or God?

I respond to this by asking the people to read my book “Reasons for Belief” (available at www.ipibooks.com).  In this book I spend two chapters delving into the liar/lord/lunatic question. If they do not want to spend the money for the book, then I might give them an outline or power point that can be found at my web site such as EvidenceforJesus notes

In short, Jesus made incredible, amazing, fantastic claims about himself.  Either they are true, or he is a liar or he is a crazy person.  He definitely is not a liar or a crazy person.  No one can defend these options.  Jesus was no liar.  No one can sustain such a claim. He did not do the things liars do.  Jesus was not crazy.  He did not do the things that crazy people do.  Jesus was, by acclamation, one of the most honest and sane people who ever lived.  The only option remaining is that he is who he says he is, which is a sinless person, the bread of life, the resurrection and the life, the Son of God.  Jesus is God-in-the-flesh.  How do I know this?  Because he claimed it to be true, and he worked the miracles which proved it is true.  He claimed to be the resurrection and the life, and then he resurrected Lazarus.  He claimed to be the bread of life right after he made bread for thousands out of thin air.

Beside, Jesus fulfilled dozens of amazing and specific prophecies in the Jewish Scripture about their messiah and he was raised from the dead on the third day after his execution by the Romans.

That is the extremely brief answer to your question.

John Oakes