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Chapter 15 The Fed and Monetary Policy (Federal Reserve System- "The…
Chapter 15 The Fed and Monetary Policy 
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Monetary Policy- the expansion or contraction of the money supply in order to influence the cost and availability of credit.
One element of monetary policy is the reserve requirement. This means a percentage of every deposit must be set aside as legal reserves.
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Fiscal Policy- the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy
While monetary policy focuses on a central bank, fiscal policy focuses on government spending.
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