Homework question help

Economics
Tutor: None Selected Time limit: 1 Day

How do the changes in monetary and fiscal policy instruments affect you personally or work wise?

Sep 30th, 2015

Thank you for the opportunity to help you with your question!

Monetary policy and fiscal policy are different in this way. Fiscal policy is a term referencing taxation, government expenditures and the borrowing associated with both. Fiscal policy is just the government’s business plan Monetary policy is a targeted means of managing the value of money.

1)Interest rate: Central bank uses monetary policy to determine interest rate at which banks lend money. Lower interest rate means cheaper loan, and vice versa.

2) Inflation: Monetary policy can be used to control inflation. Of course higher inflation means items are very expensive affecting me personally.

3) Increase growth or create jobs: If government want to increase growth or create more jobs, it can increase spending. More jobs better for me. This is where fiscal policy comes in.



Please let me know if you need any clarification. I'm always happy to answer your questions.
Sep 30th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Sep 30th, 2015
...
Sep 30th, 2015
Dec 6th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer