Question

what is the role of monetary and fiscal policies in two economic system?​

Answer 1

Answer:

Both aim at creating a more stable economy characterised by low inflation and positive economic growth. Both fiscal and monetary policy are an attempt to reduce economic fluctuations and smooth out the economic cycle. The main difference is that Monetary policy uses interest rates set by the Central Bank.

Answer 2

Answer:

Both aim at creating a more stable economy characterised by low inflation and positive economic growth. Both fiscal and monetary policy are an attempt to reduce economic fluctuations and smooth out the economic cycle.

The main difference is that Monetary policy uses interest rates set by the Central Bank. Fiscal policy involves changing government spending and taxes to influence the level of aggregate demand.

Explanation:

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