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lowering intrest rates (A+(

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11y ago

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What is the main goal of both fiscal and monetary policy?

The main goal of both fiscal and monetary policy is to stabilize the economy.


Does fiscal or monetary policy influence real GDP?

Both fiscal and monetary policy can affect real GDP, due to time-lag in wage and price adjustments. In general, however, fiscal policy has a much more direct effect on real GDP.


Which of these is not a shared goal of both the fiscal and monatery policy?

lowering interest rates


Is monetary policy neutral in both the short run and the long run?

Monetary policy is not neutral in the short-run but neutral in the long-run. Besides, fiscal policy is not neutral in both short-run and long-run.


Aggregate demand in the US is influenced by both inflation and?

Aggregate demand is actually influenced mostly by the nation's monetary policy and fiscal policy, not so much by inflation. Aggregate demand is actually influenced mostly by the nation's monetary policy and fiscal policy, not so much by inflation.


Stabilizing a nation's price level and the purchasing power of its money can be achieved how?

both monetary and fiscal policy


What do monetary and fiscal policy have in common?

from my idea i think one think they both have in common is that they both run the economy for short term.


Which policy, fiscal or monetary, is more effective in stimulating economic growth and stability?

Both fiscal and monetary policies can be effective in stimulating economic growth and stability, but they work in different ways. Fiscal policy involves government spending and taxation, while monetary policy involves controlling the money supply and interest rates. In general, fiscal policy is more direct and can have a quicker impact on the economy, while monetary policy is more indirect and can be used to fine-tune the economy over the long term. Ultimately, the effectiveness of each policy depends on the specific economic conditions and goals of the government.


How are monetary and fiscal policy similar?

Both monetary and fiscal policy may be used to influence the performance of the economy in the short run. They share many of the same goals which are to: keep inflation low, maintain positive economic growth, and aim for full employment.


How do you distinguish fiscal policy from monetary policy?

Opinions about if fiscal policy or monetary policy is better will vary depending on who you ask. One country may benefit greatly with fiscal policy, while another may not. It all has to do with their economic system.


What is the difference between fiscal policy and financial policy?

Not being trained in this field I would venture the following from some experience: Firstly, both are about resources of the money kind. Fiscal policy could be confined to a financial year (or policy for a 12 month period) or policies applied to financial years. Whislt Financial policy could be generic for any policy involving money


Methods to control of unemployment?

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