Asked by Santos Espinoza on Apr 29, 2024
Verified
What is the difference between fiscal policy and monetary policy?
Fiscal Policy
The use of government spending and tax policies to influence economic conditions, including economic growth, inflation, and unemployment.
Monetary Policy
A strategy by which a central bank controls the supply of money in an economy, often targeting interest rates to achieve economic stability or growth.
- Differentiate between fiscal policy and monetary policy, including the role of the Federal Reserve.
Verified Answer
CG
Chloe GrantMay 03, 2024
Final Answer :
Students' answers may vary.
Fiscal policy is the manipulation of components of the national budget, taxes, and spending to regulate the economy, whereas monetary policy is a method of economic management that regulates the supply of money in the economy.
Fiscal policy is the manipulation of components of the national budget, taxes, and spending to regulate the economy, whereas monetary policy is a method of economic management that regulates the supply of money in the economy.
Learning Objectives
- Differentiate between fiscal policy and monetary policy, including the role of the Federal Reserve.