explain how implementation of fiscal policies and monetary policies can both be utilized to increase…

explain how implementation of fiscal policies and monetary policies can both be utilized to increase consumer and business spending and spur economic growth. which of these policies will impact the federal budget and how? (4 points)\nshort answer rubric (4 points)\npoints\nawarded\ncriteria

explain how implementation of fiscal policies and monetary policies can both be utilized to increase consumer and business spending and spur economic growth. which of these policies will impact the federal budget and how? (4 points)\nshort answer rubric (4 points)\npoints\nawarded\ncriteria

Answer

Brief Explanations:

Fiscal policy involves government spending and taxation. Increasing government spending or cutting taxes can put more money in consumers' and businesses' hands, boosting spending. Monetary policy, controlled by central banks, affects money - supply and interest rates. Lowering interest rates makes borrowing cheaper, encouraging spending. Fiscal policy directly impacts the federal budget. Increased government spending or tax cuts can lead to budget deficits as revenues may decrease or expenditures increase. Monetary policy generally has less direct impact on the federal budget as it mainly operates through the financial system.

Answer:

Fiscal policy can increase consumer and business spending by increasing government spending or cutting taxes. Monetary policy can do so by lowering interest rates. Fiscal policy impacts the federal budget as increased spending or tax cuts can lead to deficits. Monetary policy has less direct budget impact.