Monetary or Fiscal Policy?

Approving a tax increase is usually not popular with the voters

Changes in spending could create jobs

Conducted by the Federal Reserve Board

Elected Representatives  make this policy

The amount of money needed for mandatory spending can limit the amount of money available for other programs.

Controls money supply and interest rates.

Increasing and decreasing taxes.

Different levels of government often change spending in opposite ways

This policy may decrease inflation, by decreasing the output of money, and raising interest rates.

Selling securities/bonds, cause interest rates to increase