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Q: What determines which type of fiscal policy is used and when?
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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.


Fiscal policy and monetary policy?

fiscal is the governments budget in terms of spending and expenditure. so there can either be a budget deficit or a budget surplus. when there is a budget surplus, government use a contractionary fiscal policy, and when there is a deficit, they use an expansionary fiscal policy. Monetary policy is used to combat an economy growing to quickly and inflation is rising. in most countries this is the Official Cash Rate. There is a tight monetary policy which government can impose if the economy is growing rapidly and this is used to constrict spending within that economy


What is the difference between fiscal monetary and supply-side economics policy?

The fiscal policy focuses on how government intervention will shift the demand depending on which issue is the most pressing. The supply policy is used when more employment is needed.


What is fiscal policy and how is it different to monetary policy?

Monetary policy refers to any measure that bring about changes in the rate of interest and the supply of money. Fiscal policy is the term used to describe how governments use taxation and government spending to manage the economy. <><> Fiscal policy includes increase or decrease of government expenditures and taxes while monetary policy includes expansion n contraction of money supply. <><> Fiscal policy is the government's budget in terms of spending and expenditure. There can either be a budget deficit or a budget surplus. When there is a budget surplus, the government uses a contractionary fiscal policy, and when there is a deficit, they use an expansionary fiscal policy. Monetary policy is used to combat an economy growing to quickly and inflation is rising. In most countries this is the Official Cash Rate. There is a tight monetary policy which government can impose if the economy is growing rapidly and this is used to constrict spending within that economy


Explain the role of fiscal policy and monteary policy?

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

Related questions

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.


Fiscal policy and monetary policy?

fiscal is the governments budget in terms of spending and expenditure. so there can either be a budget deficit or a budget surplus. when there is a budget surplus, government use a contractionary fiscal policy, and when there is a deficit, they use an expansionary fiscal policy. Monetary policy is used to combat an economy growing to quickly and inflation is rising. in most countries this is the Official Cash Rate. There is a tight monetary policy which government can impose if the economy is growing rapidly and this is used to constrict spending within that economy


What is the difference between fiscal monetary and supply-side economics policy?

The fiscal policy focuses on how government intervention will shift the demand depending on which issue is the most pressing. The supply policy is used when more employment is needed.


Methods to control of unemployment?

monetory policy and fiscal policy both methods are used to control unemployment rate.


Which policy relates to the statement the proceeds from ad valorem payments will be used to support public schools?

fiscal policy a+


Which policy relates to this statement The proceeds from ad valorem payments will be used to support public schools?

fiscal policy a+


What is fiscal policy and how is it different to monetary policy?

Monetary policy refers to any measure that bring about changes in the rate of interest and the supply of money. Fiscal policy is the term used to describe how governments use taxation and government spending to manage the economy. <><> Fiscal policy includes increase or decrease of government expenditures and taxes while monetary policy includes expansion n contraction of money supply. <><> Fiscal policy is the government's budget in terms of spending and expenditure. There can either be a budget deficit or a budget surplus. When there is a budget surplus, the government uses a contractionary fiscal policy, and when there is a deficit, they use an expansionary fiscal policy. Monetary policy is used to combat an economy growing to quickly and inflation is rising. In most countries this is the Official Cash Rate. There is a tight monetary policy which government can impose if the economy is growing rapidly and this is used to constrict spending within that economy


What are the two things the government does that fall under fiscal policy?

The term fiscal policy is used to describe an economic practice by the government. The two things the government does that fall under this policy is the process of collecting taxes and the management of spending.


What is the impact of fiscal policy?

Fiscal policy is used by governments to influence the level of aggregate demand in the economy, in an effort to achieve economic objectives of price stability, full employment and economic growth.


Government spending and revenue collection used to influence the economy is referred to as what?

Fiscal Policy


The proceeds from ad valorem payments will be used to support public schools?

fiscal policy


How can fiscal policy be used to stimulate Australia's economic activity?

fiscal policy can be used to stimulate economic activity by increasing spending. this is done by reducing taxes and increasing government spending to increase supply and demand which has a flow on effect for individual spending.