Principles of Macroeconomics / Unit 1 MAC 0010 short lesson, about 20 seconds
Monetary Policy and Fiscal Policy
Captions available
The idea
Monetary policy is set by the central bank and works through interest rates and bank lending. Fiscal policy is government spending and taxation, set by the legislature and executive.
In practice
The Federal Reserve runs monetary policy; Congress and the President set fiscal policy.
Where people slip
Both are named here and taught later: monetary policy in unit twelve, fiscal policy in unit fourteen.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
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