Question

Discuss the main differences between fiscal policy and monetary policy. What steps or actions does the...

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?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The tools that are used in fiscal policy is government spending and taxes while in monetary policy, government uses interest rates as tools. Fiscal Policy has no effect on exchange rate while monetary policy has high effect on exchange rate as higher supply can get to lead to inflation. Monetary policy can be set by central bank or fiscal policy is set by the government. If fiscal policy is to be implemented, the government uses tools like spending, monetary policy the bank uses the tools like interest rate in order to pursue either type of policy.

Add a comment
Know the answer?
Add Answer to:
Discuss the main differences between fiscal policy and monetary policy. What steps or actions does the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT