American Government / Unit 10 Gov 460 short lesson, about 20 seconds
Fiscal and Monetary Policy
Captions available
The idea
Fiscal policy is taxing and spending, set by Congress and the president; monetary policy is the management of interest rates, set by the Federal Reserve.
In practice
A tax cut is fiscal; a rate change is monetary — different tools, different hands.
Where people slip
The Federal Reserve's independence means elected officials do not set the rates.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Unlocks
Something wrong in this lesson? Flag it · Sources for American Government