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Fiscal and Monetary Policies - Revised

Economics
Free Course
Monetary policy is set by the central bank, while fiscal policy is set and managed by the government. They are two of the main strategies used to achieve a country's economic goals. In a few short hours, this free economics course will teach you the important concepts behind fiscal and monetary policies, how they are used to impact a country's economy and population, and how supply and demand affects monetary circulation and interest rates.
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  • Duration

    1-2 Hours
  • Assessment

    Yes
  • Certification

    Yes
  • Responsive

    Yes
  • Publisher

    Khan Academy

Description

Outcome

Certification

View course modules

Description

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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Learning Outcomes

Having completed this course, you will be able to:


  • Examine the concept of viewing interest as 'rent for money'
  • Describe how money Supply and Demand impacts interest rates
  • Discuss how central banks use monetary policy to adjust the money in the market
  • Examine how a fiscal policy can change GDP
  • Outline how changes to tax or government spending can have similar effects on GDP

Certification

All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire official Certification, which is a great way to share your achievement with the world. Your Alison Certification is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certification for completed Certificate courses:

Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping

All Certification is available to purchase through the Alison Shop. For more information on purchasing Alison Certification, please visit our faqs. If you decide not to purchase your Alison Certification, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certification pricing, please visit our Pricing Page.

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