Fiscal_Vs._Monetary

Fiscal Vs. Monetary Complexity and debate emerge from the discussion of the fiscal and monetary policies and which best suits the needs of the American economy. The truth of the matter is that both are strong policies and aspects of both policies are applied to the economy. In order to delve further into the basis of this debate, it is important to review the fiscal policy, the monetary policy, and the current state of our economy. The fiscal policy encompasses the decisions by the President and Congress, usually relating to taxation and government spending, with the goals of full employment, price stability, and economic growth. By changing tax laws, the government can effectively modify the amount of disposable income available to its taxpayers. For example, if taxes were to increase, consumers would have less disposable income and in turn would have less money to spend on goods and services. This difference in disposable income would go to money, economy, policy, government, monetary, increase, income, fiscal, disposable, consumers, policies, through, spending, services, reserve, order, needs, less, goods, federal, debate, companies, both, available, amount, wind, ways, way, utlizes, unfortunately, two, turn, truth, time, taxpayers