fiscal policy

fiscal policy

what are the goals and limits of fiscal policy?
1. to control the economy and lessen the effects of troughs and peaks
economic ideas
1. classical: economy will control itself
2. demand: economy driven by demand for goods
3. supply: economy is drive by the supply of goods
4. keynesian: government should be active in the economy
effects of budget deficits and national debt
1. budget deficits cause the national debt to rise
governments use of spending and taxing to control the economy
monetary policy
1. federal reserve
  1. organization of fed reserve
    1. 12 district banks
      1. national banks are members
      2. banks pay $ to receive stock
      3. controlled by board of geovernors
  2. controls money in the economy
  3. control
    1. change tax values
    2. make sure banks are following guidelines
2. stability
  1. makes economies troughs and peaks less extreme

Resource summary

	Created by dominickcurtiss over 9 years ago