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Do you think that Monetary policy is easier to make than fiscal policy? Why is one easier or harder than the other? What is the Goal of each of the policies? Are the goals in conflict or complements of each other?

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Divya Singh
Divya SinghLv10
28 Sep 2019

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Related questions

A2. What is the basic objective of monetary policy? What are the major strengths of monetary policy? Why is monetary policy easier to conduct than fiscal policy?

QUESTION SET A A1. Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production? What problem is posed by any comparison over time of the market values of various total outputs? How is this problem resolved? A2. What is the basic objective of monetary policy? What are the major strengths of monetary policy? Why is monetary policy easier to conduct than fiscal policy? A3. Explain why a single commercial bank can safely lend only an amount equal to its excess reserves but the commercial banking system as a whole can lend by a multiple of its excess reserves. What is the monetary multiplier, and how does it relate to the reserve ratio?

Drawing on current business publications, find an article in which either fiscal or monetary policy makers were describing their goals of maintaining stable prices, full employment, and adequate economic growth over time. Which goal was the most important at the time your article was written? Then visit the current ‘Beige Book” report for the Federal Reserve for your region (please identify your region) and compare the current discussions at the Fed with the article that you found. How successful do you think current monetary policy has been at achieving its goals?

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