BUNSSS

OHHH, I know this one! Federal Reserve Board is in charge of Monetary Policy. fiscal policy is directed by both the executive and legislative branches of the government.
Monetary policy in the United States comprises the Federal Reserve's actions and communications to promote maximum employment, stable prices, and moderate long-term interest rates, and Fiscal policy is the use of government spending and taxation to influence the economy.
Hey Kids, If you want to live then you have to answer these questions. Define monetary and fiscal policy.
Okay, that was a lucky guess, now answer me this. Who is in charge of monetary policy, and who is in charge of fiscal policy?
What impact would the Fed’s increasing interest rates have on loans? How would a higher interest rate impact economic growth? Would the Fed increase interest rates to fight inflation or recession?
Too Easy! The monetary tools are open market operations, the discount rate, and reserve requirements. The fiscal tools are reserve requirements, the discount rate.
They impact the cost of loans, causing it to go up. Higher interest rates typically slow down the economy since it costs more for consumers and businesses to borrow money. It fights inflation
Now tell me what the 3 main monetary tools are and what the two fiscal tools are.
YYYAAAYYY!!!
You guys win for now, but next time you won't be so lucky.

Over 40 Million Storyboards Created

No Downloads, No Credit Card, and No Login Needed to Try!