Monetry Policy Flashcards
1
Q
Monetary policy
A
Manipulation of the level of demand in the economy using the rate of interest
2
Q
Fiscal policy
A
Economic policy used to influence the level of spending in the economy
Conducted by the government through taxation and public spending
Led by the chancellor of exechour
3
Q
Multiplier effect
A
The effect of changes in economic activity in one or other sectors
This is the knock on effect
