Monetary policy refers to central bank activities to control the supply of money.
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Fiscal policy refers to the use of government expenditure, tax, and borrowing activities to achieve economic goals. Monetary policy refers to central bank activities to control the supply of money. Their goals are maximum employment, stable prices, and moderate long-term interest rates.
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Subject 1. What is Money? Fiscal policy refers to the use of government expenditure, tax, and borrowing activities to achieve economic goals. Monetary policy refers to central bank activities to control the supply of money. Their goals are maximum employment, stable prices, and moderate long-term interest rates.
The Functions of Money
Money performs three basic functions.
• It serves as a medium of exchange to buy and sell goods and services. Money simplif
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