Purchase Solution

Fiscal Policy versus Monetary Policy

Not what you're looking for?

Ask Custom Question

What is the difference between fiscal policy and monetary policy? Is deficit spending monetary policy? We have done a lot of deficit spending since 2008. Has it worked?

Purchase this Solution
Solution Preview

What is the difference between fiscal policy and monetary policy?

Fiscal and monetary policies are instruments that are used by the government to either stimulate economic growth or to slow down the rate of economic activities in the country. Monetary policy refers to the activities that are designed to achieve macroeconomic objectives that include: controlling the supply of money in the economy, strengthening the banking system, stabilizing the country's economy, and achieving full employment. Monetary policy in the United States ...

Solution provided by:
Edwin Sinclar, MBA
Education
  • MBA, Aspen University
  • Bachelor of Science , Berea College
Recent Feedback
  • "Thank u"
  • "Thank You!"
  • "Thanks!"
  • "Thank you so much"
  • "Great job...thanks."
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • policy activism versus policy rules

    This view was supported by Keynes that government must use fiscal policy to increase its spending and reduce unemployment. At the same time the government may use monetary policy to control inflation rate.

  • Fiscal Policy in the Government

    For these reasons, monetary policy is often preferred. However, monetary policy can be ineffective when a country is experiencing very low, or negative, inflation. Thus, there may be times when fiscal policy, despite its drawbacks, may be useful.

  • AA-DD diagrammatic analysis

    d)Explain why both fiscal and monetary policy under a fixed exchange rate regime require the central bank to buy or sell foreign assets. Under what circumstances is there a role for monetary policy under a fixed exchange rate regime?

  • Monetary and fiscal policy to stimulate the economy

    650407 Monetary and fiscal policy to stimulate the economy Monetary and fiscal policy (collectively called demand management) can be used to stimulate the economy.

  • GDP: Fiscal and Monetary Policy

    Monetary and Fiscal Policy 1. Suppose that the real GDP is below potential GDP. a. What fiscal policy tools could be used to stimulate the economy? b.

  • Policy Mix in Goods and Money Markets

    Mix: Expansionary monetary policy, no change in fiscal policy. Aggregate output increases, means the policy is expansionary fiscal policy.

  • Impact of fiscal and monetary policies on the exchange rate

    Similarly, a contractionary monetary policy leads to an appreciation of the US dollar. Fiscal Policy: Expansionary fiscal policy increases the relative value of a country's currency.

  • Fiscal Policy and Monetary Policy

    180913 Fiscal Policy and Monetary Policy Essay 1.) Describe the process of fiscal policy including alternative types and the ramifications/efficiency of its use. Essay 2.)

  • Fiscal and Monetary Policy

    465694 Fiscal and Monetary Policy Explain the following scenarios. Determine if these represent fiscal policy or monetary policy, or neither fiscal or monetary policy not all government decisions are macro-economic in nature. a.)

View More Related Solutions