This topic contains a solution. Click here to go to the answer

Author Question: Discuss the differences in philosophy, key actors, and tools of fiscal and monetary policies. Should ... (Read 25 times)

waynest

  • Hero Member
  • *****
  • Posts: 553
Discuss the differences in philosophy, key actors, and tools of fiscal and monetary policies. Should the federal government give preference to one or the other? Why or why not?
 
  What will be an ideal response?

Question 2

Government policy that affects the performance of the economy as a whole is known as __________.
 
  a. microeconomic policy
  b. monetary policy
  c. macroeconomic policy
  d. fiscal policy



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

stallen

  • Sr. Member
  • ****
  • Posts: 336
Answer to Question 1

An ideal response will:
1, Discuss the difference between fiscal and monetary policies, noting that monetary policy affects the money supply and is primarily used as a tool to manage inflation, and fiscal policy is related to taxing and spending and is primarily used to address issues of unemployment.
2, Connect those different tools to the ideological positions of the left and the right.
3, Analyze the different origins of fiscal and monetary policies, noting that Congress and the president have primary responsibility for the former, while the Federal Reserve Board has the primary responsibility for monetary policy.
4, Compare the different tool sets of both policies, including monetary policy efforts at managing interest rates to either expand or contract the money supply to stimulate or slow down economic growth, and fiscal policy efforts to use taxation and government spending rates to help stimulate investment and employment.
5, Assert that under a specific set of circumstances, one policy menu is preferable to the other, depending on the government's interests, illustrating this through specific examples such as the recent stimulus package to reduce unemployment or the decision by the Federal Reserve to keep interest rates low to encourage borrowing.
6, Provide a concise and effective conclusion.

Answer to Question 2

c




waynest

  • Member
  • Posts: 553
Reply 2 on: Jul 10, 2018
:D TYSM


sailorcrescent

  • Member
  • Posts: 334
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

For a complete list of videos, visit our video library