What Are the Two Ways to Conduct Typical Fiscal Policy,and

question 61

Essay

What are the two ways to conduct typical fiscal policy,and how do these affect the components of aggregate demand?

---

Definitions:

Board of Governors

A governing body, often of a bank, organization, or college, responsible for overseeing its management and operations.

Monetary Policy

Actions taken by a central bank to control the money supply in an economy, influencing interest rates and inflation.

Federal Securities

Financial instruments issued by the federal government, including Treasury bills, notes, and bonds, which are used to finance government spending.

Depository Institutions

Commercial banks and thrift institutions; financial institutions that accept deposits from the public