Question

Enumerate 2 differences between fiscal policy monetary policy. Please explain it clearly and comprehensively

Enumerate 2 differences between fiscal policy monetary policy. Please explain it clearly and comprehensively

Homework Answers

Answer #1
  1. Monetary policy is formulated by the central bank with specific target on inflation while Ducal policy is managed by government and have no specific target.
  2. Monetary policy is worked throughout gh the interest rate and money supply changed while Fiscal policy is through change in government spending and Taxation
  3. Monetary policy is independent of Political pressure, Fiscal policy is controlled by Government/Politicians only
  4. Monetary policy atfect the foreign exchange rates and housing market in account of interest changes while fiscal policy defines budget finances/borrowing if needed
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