1. The two main tools of macroeconomic policy include monetary policy and fiscal policy. Briefly describe...

1. The two main tools of macroeconomic policy include monetary policy and fiscal policy. Briefly describe the main components of each.

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Rahul Sunny answered 9 months ago

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Describe the 4 main tools of monetary policy that the Fed uses. Describe the Fed’s main...

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Investopedia defines, “Monetary policy and fiscal policy refer to the two most widely recognized "tools" used to influence a nation's economic activity. Monetary policy is primarily concerned with the management of interest rates and the total supply of money in circulation and is generally carried out by central banks such as the Federal Reserve. Fiscal policy is the collective term for the taxing and spending actions of governments. In the United States, the national fiscal policy is determined by the...

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• The role of fiscal & monetary policy and how both tools are used by in setting, evaluating and changing economic policy.

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