222 Reading: Monetary Policy

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.

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ACC Principles of Macroeconomics by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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