The difference between fiscal policy and monetary policy.
Fiscal policy is fixed by the government and focuses on the governments spendings and revenue. It has two categories that is government revenue which is also the taxes and the government expenditure.
On the other hand monetary policy is determined by the central bank and focuses on controlling the money supply through various monetary policy instruments like open market operations, reserve requirements etc.
Government can help increase the demand and the economic activities in the economy by reducing the taxes. This production taxes increases internet disposable income available with the public and hence helps in increasing the aggregate demand and economic activities of the society.
The government can increase the taxes which would lead to A reduction in the economic activities and hence would reduce the aggregate demand .This could also be done by decreasing the spendings done by the government on the economy.
on the other hand with the monetary policy the central bank can influence the money supply as it would increase the Reserve Requirement when it needs to reduce the supply of money in the economy and could reduce the Reserve Requirement when the supply of money needs to be increased. Similarly in open market it could buy more of bonds and increase the money supply or could sell the bonds and reduce the money supply.
Both these policies are required for the overall development of the economy.
In the Keynesian model, the difference between using monetary and fiscal policy to eliminate a recession is that________. an expansionary fiscal policy will leave the economy with a lower real interest rate than an expansionary monetary policy. fiscal policy will eliminate a recession quicker than monetary policy will. monetary policy will eliminate a recession quicker than fiscal policy will. an expansionary monetary policy will leave the economy with a lower real interest rate than an expansionary fiscal policy.
Explain the difference between Fiscal Policy and Monetary Policy. What are some of the “tools” used to implement fiscal policy? Cite at least two specific examples of action taken to implement fiscal policy (or at least attempted) in the past year. Who did what, how, and why?
What the difference between Keynes and Hayek views on how fiscal and monetary policy affect the economy? Thanks
Answer needs to be 200 words What is the difference between fiscal and monetary policy? What role does politics play in shaping these policies? How has NAFTA impacted the United States? Overall, do you believe that it was a positive move for the U.S.? Why or why not?
briefly describe the difference between Fiscal & Monetary policies. Next identify at least one fiscal and one monetary policy that was instituted in March 2020 in response to the COVID-19 crisis to help with economic recovery. Using the AD-AS model, explain how these policies were expected to work.
Discuss the main differences between fiscal policy and monetary policy. What steps or actions does the government take to influence or pursue either type of policy?
What is the difference between tight and ease monetary policy?
(a)Which is more effective between fiscal policy and monetary policy in tacking inflation and tackling economic recession? (b) Discuss fully the relationship between the quantity theory of money and money demand
Monetary policy is ____________ efficient than fiscal policy because _____________. less; fiscal policy is conducted by elected officials more; of central bank independence more; of political institutions less; of the long run neutrality of money
Does monetary policy have an advantage over fiscal policy?