monetary vs. fiscal policy

monetary vs. fiscal policy

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  • hey do you know the difference between fiscal and monetary policy?
  • April Johnson & Raquel Nava
  • no what is it?
  • fiscal deals with taxes and spending and monetary is RRR, discount rate, and open market.
  • wow! i didn't know that, i have a question.
  • recent actions by the government will impact the economy when spending and prices go up. also, the tax code goes up giving people more money and when people have more money, spending goes up and prices go up
  • how will recent actions by the government impact the economy ?
  • did you know that the economy of Texas is good which means, our manufacturing and our retail goes up but, home sales slow down, there is a labor shortage and inflation begins
  • ooh tell me more!!!
  • the U.S economy is also good which means, our U.S economic activity goes up, unemployment goes down, and federal funds rate goes up because of inflation 
  • yes !!!!
  • so all this means that that both contradict each other right ?
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