Fiscal vs Monetary Policy

Front

Taxes and Spending

Back

fiscal

Front

Joint effort between the executive and legislative branches

Back

fiscal

Front

Congress reviews the budget and offers suggestions

Back

fiscal

Front

To help the economy grow, the government will decrease or lower taxes. This allows people to have more money and buy more goods and services. What type of policy is this? Options: fiscal, monetary

Back

fiscal

Front

The action by the FED to adjust the size of the money supply, and to adjust interest rates in order to keep prices down and employment high.

Back

monetary policy

Front

To help the economy grow, the FED may____________the reserved requirement, allowing banks to loan more people money so that they spend more

Back

lower

Front

To slow the economy, the FED may____________ the reserve requirements and there will be less money to loan out to people.

Back

increase

Front

The amount that all banks have to keep in the reserve and they can't loan out to people

Back

reserve requirement

Front

The interest rate the FED charges banks, to borrow money. It will be lowered to help the economy grow and raised to slow the economy

Back

discount rate

Front

How does the federal government borrow money?

Back

sells treasury bonds