Tax decreases money supply increase improvements in

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Tax decreases Money supply increase Improvements in economic conditions in other countries Increased security about future income and jobs A decrease in real interest rate not because of price level changes A decline in the foreign exchange rate of the dollar Aggregate demand shifts to the right when there is an expansionary policy and it shifts left when the AD curve shifts to the left where there is contractionary policy. What are fiscal and monetary policies? Do they have an immediate effect on the AD curve or SAS curve? Please explain Fiscal and monetary policies are recognized widely in the influence of economic activity. Monetary policy is basically concerned with supply of money that is in circulation and interest rates management in Central banks. This policy is used to check the growth of an economy or to stimulate the economy. Monetary policies work by incentivizing businesses and individuals to spend and borrow monetary policy objectives that stimulates economic growth. Monetary policy is more of a blunt tool in contacting md expanding the money tool. On the other hand, fiscal policy is a term used for spending and taxing actions of government. In the U.S, this policy is
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determined legislative and executive branches of the government. The main objective of these policies is to target total composition of spending or the total level of spending in the economy, or both. Fiscal policy is mainly used when the government wants to spur the economy. Fiscal policy has an impact on aggregate demand through the changes that are done in government taxation and spending. Investment and consumer spending is impacted by household income and employment. Monetary policy has an impact on aggregate demand since the supply of money in the economy has an influence in inflation and interest rates. What happens to the aggregate demand curve in the US if the exchange rate increases(appreciates) so that U.S. made products become more expensive?
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