What is a monetary policy?
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A2. What is the basic objective of monetary policy? What are the major strengths of monetary policy? Why is monetary policy easier to conduct than fiscal policy?
For many years, the overall economic policy of the United States has been a balancing act between fiscal policy and monetary policy. Explain what is meant by the following:
(A). Fiscal policy
How is fiscal policy set?
Who sets fiscal policy?
How does this policy affect the economy?
(B) Monetary policy
How is monetary policy set?
Who sets monetary policy?
How does this policy affect inflation, the economy?
What is monetary policy? Discuss four important instruments of monetary policy.