Answer: Fiscal policy is defined as changes in government spending and taxation to affect the level of economic activity. Monetary policy consists of changing interest rates and changing the quantity of money in the economy in order to affect the level of economic activity. Both policies have an impact on the AD curve.
Fiscal policy is the government's attempt to influence the economy by setting and changing interest rates, setting taxes, and buying goods and services. Monetary policy is the fed's attempt to influence the economy by setting the quantity of money and adjusting the interest rates. Both have an impact on the AD curve.
Answer:
ReplyDeleteFiscal policy is defined as changes in government spending and taxation to affect the level of economic activity. Monetary policy consists of changing interest rates and changing the quantity of money in the economy in order to affect the level of economic activity. Both policies have an impact on the AD curve.
Fiscal policy is the government's attempt to influence the economy by setting and changing interest rates, setting taxes, and buying goods and services.
ReplyDeleteMonetary policy is the fed's attempt to influence the economy by setting the quantity of money and adjusting the interest rates.
Both have an impact on the AD curve.