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Give any two differences between fiscal policy and monetary policy.

Asked by Topperlearning User 5th June 2015, 9:02 AM
Answered by Expert

Differences between fiscal policy and monetary policy:

Fiscal policy

Monetary policy

Fiscal policy affects the revenue and expenditure of the government.

Monetary policy affects the aggregate supply of money in an economy.


Fiscal policy instruments are government expenditure, imposition of taxes, subsidy provision, public debt, etc.

Monetary policy instruments are bank rate, statutory liquidity ratio, cash reserve ratio, differential interest rates, etc.


Answered by Expert 5th June 2015, 11:02 AM
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