1. Comparison between Monetary Policy and Fiscal Policy
... money supply. Fed tries to stabilize economy by controlling the quantity of money that is made available in the economy, so-called money supply. Fed has several tools to regulate the money supply, purchase and sale of government bonds, open-market sale of bonds, and so forth. Fiscal policy refers to the government's choices regarding the overall level of government purchases or taxes ... . Unlike monetary policy that changes the money supply and influences the spending decisions, government alters its own purchases of goods and services in the fiscal policy; thus, fiscal policy shifts th...
- Word Count: 315
- Approx Pages: 1
- Grade Level: Undergraduate