Fiscal vs Monetary Policy

Front

taxing and spending

Back

fiscal

Front

joint effort between the executive and legislative branches

Back

fiscal

Front

Congress reviews the budget and offers suggestions

Back

fiscal

Front

to help the economy grow, the government will decrease or lower taxes. This allows people to have more money and buy more goods and services

Back

fiscal

Front

What can the government do to slow the economy down? Options: lower taxes, raise taxes, spend more, spend less

Back

raise taxes

Front

to help the economy grow, the government can: increase spending, decrease spending, lower taxes, raise taxes

Back

increase spending

Front

to slow the economy down the government can..... spend more, spend less, tax more, tax less

Back

spend less

Front

the action by the FED to adjust the size of the money supply, and to adjust interest rates in order to keep prices down and employment high.

Back

monetary policy

Front

to help the economy grow, the FED may____________the reserved requirement, allowing banks to loan more people money so that they spend more

Back

lower

Front

to slow the economy, the FED may____________ the reserve requirements and there will be less money to loan out to people.

Back

increase