What is fiscal policy?
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For many years, the overall economic policy of the United States has been a balancing act between fiscal policy and monetary policy. Explain what is meant by the following:
(A). Fiscal policy
How is fiscal policy set?
Who sets fiscal policy?
How does this policy affect the economy?
(B) Monetary policy
How is monetary policy set?
Who sets monetary policy?
How does this policy affect inflation, the economy?
The changing of government expenditure or taxes to achieve national economic goals is:
A) Discretionary fiscal policy
B) Automatic fiscal policy
C) Recessionary fiscal policy
D) Inflationary fiscal policy
Explain what is meant by fiscal policy. Give 2 examples of tools that can be used to implement fiscal policy. What are some of the problems with using fiscal policy?