Monetary or Fiscal Policy? Review

The Keys Weekly reported that as a result of recent policy, the interest rates have fallen to a 30 year low.

• Monetary

• Fiscal

• Expansionary

• Contractionary

The Department of Commerce reports that homes have become more affordable, as a result of a decrease in interest rates.

• Monetary

• Fiscal

• Expansionary

• Contractionary

Following an expansion of military spending, the consumer price index increased by 5% in the past year.

• Monetary

• Fiscal

• Expansionary

• Contractionary

Lower tax rates have led to an increase in housing starts.

• Monetary

• Fiscal

• Expansionary

• Contractionary

Due to current policy changes, the interest rate on credit cards has increased.

• Monetary

• Fiscal

• Expansionary

• Contractionary

Banks are now required to hold larger excess reserves, resulting in higher interest rates.

• Monetary

• Fiscal

• Expansionary

• Contractionary

The Federal Funds Rate dropped last week to 0.25%.

• Monetary

• Fiscal

• Expansionary

• Contractionary

The Discount Rate has increased to 3.5% to slow inflation.

• Monetary

• Fiscal

• Expansionary

• Contractionary

Congress passed a bill increasing the federal debt limit.

• Monetary

• Fiscal

• Expansionary

• Contractionary

As a result of government policies due to a recent recession, the U.S. increased its deficit to a record $23.3 trillion dollars.

• Monetary

• Fiscal

• Expansionary

• Contractionary