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control over money

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Q: What does Monetary policy refers to the government?
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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 aspect of a government's economic policy deals with the money supply?

monetary policy


What refers to the adjustment of an economy's money supply by a central bank?

A+ answer: monetary policy


What refers to the adjustment of an economy's money supply by central bank?

A+ answer: monetary policy


What limits government's ability to undertake monetary or fiscal policy?

The limits to fiscal policy are difficulty of changing spending levels, predicting the future. Advantages and disadvantages of government using fiscal or monetary ..

Related questions

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 aspect of a government's economic policy deals with the money supply?

monetary policy


What refers to the adjustment of an economy's money supply by central bank?

A+ answer: monetary policy


What refers to the adjustment of an economy's money supply by a central bank?

A+ answer: monetary policy


What limits government's ability to undertake monetary or fiscal policy?

The limits to fiscal policy are difficulty of changing spending levels, predicting the future. Advantages and disadvantages of government using fiscal or monetary ..


When the government lowers the income tax to stimulate the economy it is an example of what kind of policy?

monetary policy


Which government policy regulates the amount of money in circulation?

monetary police


Which is an example of a monetary policy?

The government restricts the amount of money that banks can lend. (APEX)


Definition of monetary policies?

Monetary policy is referred to as either being an expansionary policy, or a contractionary policy, where an expansionary policy increases the total supply of money in the economy, and a contractionary policy decreases the total money supply. Expansionary policy is traditionally used to combat unemployment in a recession by lowering interest rates, while contractionary policy involves raising interest rates in order to combat inflation. Monetary policy should be contrasted with fiscal policy, which refers to government borrowing, spending and taxation. More useful Information here: www.vinayakjobs.com .


What is a example of a monetary policy?

The government restricts the amount of money that banks can lend.


The part of the federal government responsible for monetary policy is?

the Federal Reserve System


What is it called when the government restricts the amount of money that can be loaned to farmers?

Monetary policy