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    fiscal policy and the FED

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    Is the fiscal policy expansionary or contractionary, and as a FED how would I compliment the fiscal policy?
    Please add any additional insights as to inflation and actions if these would be pertinent to the fiscal policy.

    © BrainMass Inc. brainmass.com October 9, 2019, 3:57 pm ad1c9bdddf
    https://brainmass.com/economics/fiscal-policy/18250

    Solution Preview

    Hello,

    Currently, the Federal government is pursuing an expansionary policy. The Federal Reserve is keeping interest rates low to encourage businesses and consumers to borrow more to expand their economic activities. The Federal government is doing the same by greatly increasing government spending, which expands economic activity by buying and hiring more. Also, cutting taxes allows consumers to have more money to spend and thereby also increasing overall economic ...

    Solution Summary

    Assess the FED and fiscal policy.

    $2.19