Fiscal and Monetary Policies

Learn more about fiscal and monetary policy and the supply and demand curve, with this free economics course.

Publisher: Khan Academy
This free online fiscal and monetary policies course teaches you about fiscal and monetary policies. It will also teach you about how these policies impact a country's economy and population, and how supply and demand affects monetary circulation and interest rates. Monetary policy is set by the central bank, while the government sets the fiscal policy. They are the two of the main strategies most countries use to achieve economic goals.
Fiscal and Monetary Policies
  • Duration

    1.5-3 Hours
  • Students

  • Accreditation






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When people talk about monetary policy, they are referring to the management of interest rates and the total supply of money in circulation. This is generally carried out by central banks, such as the U.S. Federal Reserve. This course will teach you how monetary policy impacts the changing of interest rates and influences money supply. You will also study equilibrium, which is the point where demand and supply for money cross.

Fiscal policy involves changing tax rates and levels of government spending to influence aggregate demand in the nation's economy. With this course, you will learn that instead of adjusting spending through fiscal policy, the government can adjust taxes to change aggregate demand. Increasing the supply of money in the marketplace will normally increase aggregate demand. You will study how central banks can reduce the amount of money in the market by selling bonds.

Fiscal and monetary policy are very important economics concepts, as they can have profound effects on the lives and livelihoods of a country's entire population. This course will teach you how monetary policy affects the money market indirectly and how fiscal policy affects it directly. By the end of the course, your knowledge of essential economics fundamentals will be much stronger. So why wait? Get started, today.

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