Monetary And Fiscal Policy
Beginning of paper
The Monetary and Fiscal Policies, although controlled by two
different organizations, are the ways that our economy is kept under
control. Both policies have their strengths and weaknesses, some
situations favoring use of both policies, but most of the time, only
one is necessary. ....
Middle of paper
.... allowed to loan out. If it is lowered, banks are required to
keep less money, and so more money is put out into circulation
(theoretically). If it is raised, then banks may have to
collect on some loans to meet the new reserve requirement.
The tool known as open market operations influences money and
credit operations by buying and selling of government securities on
the open market. This is used to control overall money supply. If
the Fed believes there is not e ....
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Word count: 925
Page count: 4 (approximately 250 words per page)
