Question

Monetary policy is determined by the Fed, but must be coordinated with the _________ policy through U.S. Treasury operations.

Answer 1

Answer:

Monetary policy is determined by the Fed, but must be coordinated with the FISCAL policy through U.S. Treasury operations.

Explanation:

Both monetary and fiscal policy attempt to reduce economic fluctuations. The difference between them however is that while monetary policy influences the economy through interest rates set by the FED, Fiscal policy seeks to do so by manipulating government spending and taxes.

For example, a place where monetary and fiscal policy could meet is in tax rate because when it is high it reduces the amount of money disposable to people and companies which in a way is the supply of money that the monetary policy seeks through regulate through the banking sector. It is therefore important to balance both factors

Answer 2

Answer:

Fiscal policies

Explanation:

Monetary actions are the Fed's actions of regulating the money supply in the economy to achieve stable prices and sustainable economic growth.  The Fed works under the central bank of America. To fulfill its mandate, the Fed uses several monetary policy tools such as the fed fund rare, open market operations, and the discount rate.

Monetary policies are used in conjunction with government fiscal policies to steer the economy in the preferred direction. Fiscal policies are developed by the executive arm of government and Congress and implemented through treasury operations. The policies will involve adjusting taxes and government spending to influence stable and sustainable economic development.