Distinguish between monetary policy and fiscal policy. Who is in charges of each ?

Solutions

Expert Solution

Monitory policy:

Aims to stimulate an Economy or to check growth
By motivating Individuals to borrow and spend
Monitory policy causes Economic activity
Management of interest rates and Total supply of money is the main concern
Carried out by central Banks
More efficient in improving financial Economy
Sometimes affects negatively
Less impact on real Economy
It is not much targetted when Expanding and contracting the money supply

Fiscal policy:

Target's the total composition of spending
Government policies or taxes affects fiscal policy
Taxing and spending options of government is specified by fiscal policy
Determined by Executives and legislative branches of government
More efficient in improving real Economy
Affects consumers positively
Impacts on the Economy will be of full capacity as they cause inflation
It is targetted

Monitory policy is in the concern of central bank and other regulatory authorities while the fiscal policy is in the concern of congress and the administration

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Distinguish carefully between monetary policy and fiscal policy, and illustrate your answer with regard to the...

Distinguish carefully between monetary policy and fiscal policy, and illustrate your answer with regard to the United States.

Distinguish between ‘fiscal’ and ‘monetary’. That is, what are fiscal activities and what are monetary activities?...

Distinguish between ‘fiscal’ and ‘monetary’. That is, what are fiscal activities and what are monetary activities? How are they separate things, and how are they interrelated? (Hint: The Federal Government does fiscal activity, while the Federal Reserve controls monetary activity.) The equation of exchange, MV = PQ, may be used to answer this question.

Explain the difference between fiscal and monetary policy. Who makes each of these policies? Explain. Also,...

Explain the difference between fiscal and monetary policy. Who makes each of these policies? Explain. Also, explain any 2 (two) steps that can be taken to increase the supply of money in circulation by using monetary policy.

Describe the differences between fiscal policy and monetary policy. What fiscal and monetary policies might be...

Describe the differences between fiscal policy and monetary policy. What fiscal and monetary policies might be prescribed for an economy in a deep recession? Be sure to distinguish between the monetary and fiscal policy solutions in your answer.

Explain the differences between Monetary Policy and Fiscal Policy?

Explain the differences between Monetary Policy and Fiscal Policy? Which policy do you think is best at stabilizing the economy during a recession or continue GDP decline?

What is the difference between fiscal and monetary policy? Give examples of each.

What are the distinctions between monetary policy and fiscal policy? How does each of these policies...

What are the distinctions between monetary policy and fiscal policy? How does each of these policies affect your professional and personal lives?

What is the difference between monetary and fiscal policy?

Which of the following best describes the difference between monetary policy and fiscal policy? Monetary policy...

Which of the following best describes the difference between monetary policy and fiscal policy? Monetary policy is quicker to implement but has a longer effect lag than fiscal policy. Monetary policy is slower to implement but has a longer effect lag than fiscal policy. Monetary policy is quicker to implement but has a shorter effect lag than fiscal policy. Monetary policy is slower to implement but has a shorter effect lag than fiscal policy.

What are the similarities and differences between fiscal policy and monetary policy?

Subjects