Question

Who is in charge of the fiscal and monetary policy, and how do theirs different multipliers work?

Answer 1

The in charge of fiscal and monetary policy is the federal reserve and the central bank .

Their multipliers works as in-

When there is increase in the final income due to new injection of spending then multiplier effect works. The muiltpiers depend mainly on household income and their decision to spend the money which is known as marginal propensity to consume or save.

So when there is change in the fiscal policy and monetary polic the Multipler has great impact on the economy as fiscal policy affects spending , investment , consumption in the economy