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People spending stimulates the economy

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Monetary policy seems to be money printed by the federal reserves, to lend money at lower interest rates, in order to get more people to spend, and invest money. The more people spending stimulates the economy. The Fiscal policy is, the government keeping taxes the same, or constant, and increasing spending, or lowering taxes and keeping spending constant. Which will put more money in consumer hands to boost the economy. In return, the government is taking on more debt with this policy.

Reference no: EM131704586

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