Fiscal policy is the federal government’s plan for funding and running federal programs. The goals of fiscal policy are to make it possible for government programs to run so that they can help struggling Americans. The tools that are used for fiscal policy are taxing US residents to fund government help programs and spending the money from taxes for the year in the aid programs. The federal government uses fiscal policy to help stabilize and promote growth in the economy by focusing parts of the money in the budget for fiscal policy on certain programs that promote growth.
Compare and contrast fiscal and monetary policy. How are they alike and how do they differ?
Fiscal policy is the federal government’s yearly budget and financial policy for government programs, while monetary policy is the Federal Reserve’s economic policy for the year. For the fiscal policy to be approved, both congress and the president must agree on the outline for the year, but the Federal Reserve is a bank independent to the legislative branch, and doesn’t have to get the government’s permission to pass their monetary policy for the year. Monetary policy and fiscal policy are similar in that they both influence the US economy, but through different measures. The fiscal policy controls taxes and spending, while the monetary policy buys and sells …show more content…
This way the programs will still run smoothly, and the American people will be able to save a little bit of money with lower taxes. Another suggestion I would made would be to use the tool of increasing spending on needed government programs to improve the US economy’s productivity and raise the quality of life for citizens. I would suggest to increase spending on education, healthcare, and social security because all of these government programs need improvement, and this would give them ample funds to continue running
Compare and contrast fiscal and monetary policy. How are they alike and how do they differ?
Fiscal policy is the federal government’s yearly budget and financial policy for government programs, while monetary policy is the Federal Reserve’s economic policy for the year. For the fiscal policy to be approved, both congress and the president must agree on the outline for the year, but the Federal Reserve is a bank independent to the legislative branch, and doesn’t have to get the government’s permission to pass their monetary policy for the year. Monetary policy and fiscal policy are similar in that they both influence the US economy, but through different measures. The fiscal policy controls taxes and spending, while the monetary policy buys and sells …show more content…
This way the programs will still run smoothly, and the American people will be able to save a little bit of money with lower taxes. Another suggestion I would made would be to use the tool of increasing spending on needed government programs to improve the US economy’s productivity and raise the quality of life for citizens. I would suggest to increase spending on education, healthcare, and social security because all of these government programs need improvement, and this would give them ample funds to continue running