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Business Accounting and Bookkeeping
Educational Methods and Theories

Explain the role of fiscal policy and monteary policy?


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February 25, 2009 8:45PM

Fiscal Policy involves taxes and spending. It is used (ofen incorrectly) to try to manage the business cycle. It is controlled by congress and the president Monetary policy involves managing the money supply and interest rates. It has proven much more useful in managing inflation and reces fiscal policy also helps in giving such more information about the government expenditure and government policies about the current expenditure