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Monetary v. Fiscal Policy
Updated: 3/25/2020
Monetary v. Fiscal Policy
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Storyboard Description

Tall boy explains the difference between Monetary and Fiscal policy, how government spending will continue to impact the economy and describe details on the Texas economy to his dumb short friend.

Storyboard Text

  • Uhhhh... no.
  • This Storyboard was made by Samantha Neely!
  • Fun fact! Did you know the differene between monetary and fiscal policy is that monetary policy involves changing interest rate and influencing the money supply while fiscal policy involves the government changing tax rates and government spending?
  • That fact wasn't very fun.
  • Okay, well, due to the new pandemic, the government has reached a $2 trillion nation relief package provided by the government. That's the biggest in American history! but it could hurt our economy in the long run.
  • Whoa, for real?! How??
  • Well, as you can imagine, $2 trillion is a lot of money, that trumps the yearly U.S. income rate alone. Bouncing back from this isn't going to be an easy task.
  • Oh... well what about taxes?
  • Good question! New tax codes will impact the economy differently than before. The TCJA will most likely increase economic output fairly. But not all that income will find its way back to americans.
  • I can imagine...
  • Believe it or not, the Texas economy has been on a rollercoaster ride and, up until the new pandemic was introduced, was generally looking pretty good. But, things are becoming more and more uncertain as the pandemic spreads.
  • You sure know a lot about the economy.
  • The new federal funds rate targets about 0% to 0.25%, a decrease compared to the previous which was 1% to 1.25%. Generally this could help the economy as it encourages investing and spending more freely
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