fiscal monetary

What is fiscal policy? what are two fiscal policy tools?
The two major fiscal policy tools that the U.S. government uses to influence the nation's economic activity are tax rates and government spending.
Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty.
What is monetary policy
Monetary policy addresses interest rates and the supply of money in circulation, and it is generally managed by a central bank. Fiscal policy addresses taxation and government spending, and it is generally determined by government legislation.
what are three main monetary policy tools and what would the feds increasing interest rates affect on loans and what about if we had higher interest rates
Because higher interest rates mean higher borrowing costs, people will eventually start spending less.
raising the federal funds rate makes it more expensive for individuals or organizations to borrow money
The Federal Reserve controls the three tools of monetary policy--open market operations, the discount rate, and reserve requirements.

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