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In your opinion, which policy is more effective to stabilize the economy? Fiscal or Monetary Policy? Briefly discuss.

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Chika Ilonah
Chika IlonahLv10
28 Sep 2019
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Related questions

What is more effective for our economy, fiscal or monetary policy? What are the challenges of using either of these policies to help stabilize our economy?

As you have learned in Unit 8 (this week), monetary and fiscal policy play important roles in economic stimulation and or stabilization. In this regard:

 

a. When is it appropriate to use monetary and fiscal policy to stimulate or stabilize the economy? 

b. When is it inappropriate to use monetary and fiscal policy to stimulate or stabilize the economy?

c. What specific fiscal policy tools would you use to stimulate aggregate demand and how?

d. What specific monetary policy tools would you use to stimulate aggregate demand and how?

e. What is your conclusion, should policymakers use the monetary and or fiscal policy to stimulate aggregate demand? Explain briefly.

What is the difference between Monetary and Fiscal Policy?

Give Arguments for and against the policy to stabilize the economy.

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