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

Anonymous

∙ 15y ago

Updated: 12/7/2022

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

Wiki User

∙ 15y ago

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

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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.

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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.

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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.

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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.

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

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