14.19: Reading: Monetary Policy
- Page ID
- 84638
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Monetary Policy
Monetary policy involves managing interest rates and credit conditions to influence the levels of economic activity and prices. Monetary policy is similar to fiscal policy in that both are tools for influencing the nation’s economy, but fiscal policy involves manipulating the federal budget, that is, changing government spending and tax rates.
CC licensed content, Original
- Monetary Policy. Authored by: Steven Greenlaw and Lumen Learning. License: CC BY: Attribution