Monetary policy&fiscal policy Assignment Example | Topics and Well Written Essays - 500 words

Monetary policy&fiscal policy - Assignment Examplethe high unemployment levels despite the improvement in the labor market, and other cases such as high investment in communication channel and household spending as well as low inflation levels. He then concluded with an entre of that things are improving though not at a fast rate. To the question of whether Feds statement had a relationship to government shutdown, Jim give tongue to that what the statement meant was simply that fiscal policy has a role in restraining the economic growth. He stated that government uncertainties such as the one in its spending and budget have caused the picture of the economy to remain unclear. To the question of whether the statement answered of when the federal reserve might decide to ease up on measures of stimulating growth, Jim answered that it did not and stated that there has been existence of fear in financial market, many thinking that Fed would lower its bond buying over the summer which d id not happen (NPR Para 8).Money supply is constant and therefore the supply curve is a vertical line. Money pauperization curve on the other hand is negatively sloping. In case of low interest rates, people save less and hold more money. This leave alone to high quantity of money held.Announcement made from the white house stated that there would be rebates on household tax and cuts on billet tax implying $6000 on individual and a doubled amount for couples jointly filing their taxes. Additional $300 per child would apply to families with children. The compromise did not fracture satisfaction for either sides and this was brought up in a house meeting held. President Bush defended the package as containing the right policies to increase consumer spending and business investments and that it recognized tax reduction as a way of helping businesses and consumers. The rebates would be applicable to 117 million people in America and would consider those who fix less as well as thos e who earn more and cut offs would benefit businesses that took new