fiscal and monetary policy

Essay specific features

 

Issue:

Business

 

Written by:

Faith N

 

Date added:

July 22, 2015

 

Level:

University

 

Grade:

B

 

No of pages / words:

5 / 1245

 

Was viewed:

9598 times

 

Rating of current essay:

 
Essay content:

The Reserve Bank controls money supply by affecting the level of reserve assets held by financial institutions. This is done by trading assets in government securities. As the effect of change in money supply on aggregate demand is indirect, it is argued that monetary policy is less effective than fiscal policy in stabilizing the economy...
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As the effect of change in money supply on aggregate demand is indirect, it is argued that monetary policy is less effective than fiscal policy in stabilizing the economy. Fiscal policy is also aimed at influencing a nation’s aggregate demand and includes measures undertaken by the government in relation to raising revenue through taxation...
displayed 300 characters

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