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English
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| Number of pages / Number of words: |
4 / 934 |
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Fiscal Policy is "use government taxes and government spending to alter the macroeconomics outcomes" another policy is Monetary Policy this policy is " the use of money and credit controls to influence macroeconomic activity". On chapter 14 we learned about the Federal Reserve System. Federal Reserve System's duty including 1...
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Federal Reserve System's duty including 1. Clearing checks between private banks. 2. Holding bank reserves. 3. Providing currency. 4. Providing loans. Federal Reserve has very strong power to alter the economy. When Federal Reserve wants to increase money supply, just lower the reserve requirements, lower discount rates and on the open-market operations is to buy bonds, the result would increase aggregate demand and shift the curve to the right...
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