Balancing act between fiscal policy and monetary policy

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Reference no: EM131088717

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?

Reference no: EM131088717

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