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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 682 |
Essay's paper body
Expansionary policy is traditionally used to combat employment in a recession by lowering interest rates while contractionary policy has the goal of raising interest rates to combat inflationâ€. By lowering the interest rate on money, they hope that more money will be taken out on loans and these people will spend it and generate more money in the economy...
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The fed has to find the magic number of the money allowed to be put in or kept from circulation and the amount of money allowed to be spent.
The Federal Reserve fiscal policy is a manipulation of government spending and taxes. It is the same as monetary in principle. By raising taxes, the government is taken money out of circulation...
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