Question

Instruments of monetary and fiscal policy in india

Answer 1

Answer:

The two main instruments of fiscal policy are government taxation and expenditure. There are three main stances in fiscal policy:

1)neutral,

2)expansionary, and

3) contractionary.

The Fed can use four tools to achieve its monetary policy goals:

1)the discount rate,

2) reserve requirements,

3)open market operations, and

4)interest on reserves.

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Explanation: