The Two Main Tools of Macroeconomic Policy Include Monetary Policy

question 12

Essay

The two main tools of macroeconomic policy include monetary policy and fiscal policy. Briefly describe the main components of each.

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Definitions:

American Wheat

A term referring to wheat produced in the United States, which is a major global exporter of the grain.

Euro

Nineteen of the twenty-seven member states in the European Union use a standard currency, often called the eurozone.

Balance-Of-Payment

A record of all financial transactions made between a country and the rest of the world within a specific period.

Deficits

The amount by which a government's expenditures exceed its revenue.