Changes in the Government policy
What are the main tools that the government manage the economy? The government manage the economy by using the fiscal policy. The Fiscal policy involves the use of government spending, taxation and borrowing to affect the level and growth of collective demand, output and jobs. Another way the government manage economy is by using the monetary policy. This policy is designed to attempt to influence variables like the balance of payments, currency exchange rates, inflation, and employment by increasing or decreasing interest rates and controlling the money supply. Explain the term monetary policy.
The monetary policy is designed to attempt to influence variable...