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What are the tools of monetary and fiscal policy in India?

Monetary policy is a tool in India that is used the Reserve Bank to regulate interest rates. Fiscal policy in India is a tool that regulates their economy.


Who administers Fiscal Policy?

The fiscal policy, which is, controlling the level of taxes and government spending, is left to the government. On the other hand, the monetary policy, that is, the tools fr controlling money supply in the economy, is controlled by the central bank.


What are the two tools of fiscal policy that governments can use to stabilize an economy?

government spending and taxation


Difference between fiscal and monetary policy?

Monetary policy is one that containes money. this is the release and subsctraction of amount of money in economy by variuos tools (like loans to banks). Fiscal policy is government policy of taxation and subsidising (and goverment consumption). in lamens terms it is the taxing and wellfare of the nation.


What tools would be used to implement contractionary monetary and fiscal policy?

Contractionary monetary policy is typically implemented using tools such as raising interest rates, increasing reserve requirements for banks, and selling government securities in open market operations to reduce money supply. On the fiscal side, contractionary fiscal policy involves reducing government spending or increasing taxes to decrease overall demand in the economy. Both approaches aim to curb inflation and stabilize economic growth by reducing excess liquidity and consumer spending.

Related Questions

Is instruments of fiscal policy and tools of fiscal policy the same thing?

Yes these are same................


What control tools can one use in an organization?

Fiscal policy


What are the tools of monetary and fiscal policy in India?

Monetary policy is a tool in India that is used the Reserve Bank to regulate interest rates. Fiscal policy in India is a tool that regulates their economy.


Who administers Fiscal Policy?

The fiscal policy, which is, controlling the level of taxes and government spending, is left to the government. On the other hand, the monetary policy, that is, the tools fr controlling money supply in the economy, is controlled by the central bank.


What are the two tools of fiscal policy that governments can use to stabilize an economy?

government spending and taxation


Describe the fiscal policy tools available for government intervention in the American economy?

There are two tools of monetary policy.These are qualitative credit control and quantitative control. The1st control is measure of influence the allocation of credit.The 2nd is control in which supply of money is cotrolled quantitativly.


Difference between fiscal and monetary policy?

Monetary policy is one that containes money. this is the release and subsctraction of amount of money in economy by variuos tools (like loans to banks). Fiscal policy is government policy of taxation and subsidising (and goverment consumption). in lamens terms it is the taxing and wellfare of the nation.


What tools would be used to implement contractionary monetary and fiscal policy?

Contractionary monetary policy is typically implemented using tools such as raising interest rates, increasing reserve requirements for banks, and selling government securities in open market operations to reduce money supply. On the fiscal side, contractionary fiscal policy involves reducing government spending or increasing taxes to decrease overall demand in the economy. Both approaches aim to curb inflation and stabilize economic growth by reducing excess liquidity and consumer spending.


Fiscal and monetary tools used in year 2008 budget of Nigeria?

what are the fiscal and monetary tools used in year 2008 budget of nigeria


What is the definition of coercive federalism?

The federal government gives states list of things to do by limiting the money given to them. Coercive federalism, in which the federal government reduced its reliance on fiscal tools to stimulate inter-governmental policy cooperation and increased its reliance on regulatory tools to ensure the supremacy of federal policy.


What tool is use for both cutting taxes and purchasing government securities?

These are fiscal policy tools. They help you to make money while also saving money at the same time.


Which of the fiscal tools would the government use to get the economy out of a recession?

Increase federal expenditures