econ-journal27

econ-journal27 - policy comes with different plans to help...

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Duc Hoang – ECON210 Journal Date 11-7 Monetary policy is the plan to expand or contract the money supply in order to influence the cost and availability of credit. Fiscal policy is another tool for the government basically spending and taxing, or borrowing money. Monetary policy is more along the lines to help the nation increase money supply; therefore, the economy can gain certain things. Fiscal policy helps control government’s borrowing and spending. Monetary
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Unformatted text preview: policy comes with different plans to help fixing the economy, such as the easy money supply which helps expand the money supply. It increases aggregate demand, and promotes economic growth. Fiscal policy is applied to adjust the government spending or/and taxation with the aim of promoting full employment. Either one of these choices shifts the aggregate demand outward, thus increasing the real GDP....
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This note was uploaded on 03/10/2011 for the course ECON 101 taught by Professor Duc during the Spring '05 term at Linfield.

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econ-journal27 - policy comes with different plans to help...

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