Fiscal and Monetary Project
Storyboard Text
- Two main monetary policy toolsTaxesSpendingIs owned by the government Two main monetary policy toolsTaxesSpendingIs owned by the government Two main monetary policy toolsTaxesSpendingIs owned by the government
- Fiscal policy Fiscal policy Fiscal policy
- Okay girly. I have a test tomorrow on monetary and fiscal policy, but I have no clue what I'm doing! Help me please!!
- Woah. Okay let's start. With the definitions. Monetary policy is is when the Federal reserve is using their tools to stabilize the economy
- The Fiscal policy on the other hand, is when the government’s policies and the policies impact on the economy
- The Federal Reserve is in charge of the Monetary policy and the government is in charge of the fiscal policy.
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- Three main monetary policy toolsRRR (required reserve ratio) is the percent of your deposit banks may not loan outOMO (open market operations) is buying and selling bondsDiscount rate is the interest rate the Fed charges on loans to member banksRemember is owned by the Federal Reserve
- Monetary policy
- Let's say the Fed increases interest on loans? What do you think would happen?
- Yes! And higher rates would slow economic growth!
- Less people would get loans right?
- Thank you!! I'm gonna ACE THIS TEST!!
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