1. Money In America
When the government uses fiscal policy to increase the amount of money available to the populace, this is called expansionary fiscal policy. ... When output increases, the price level tends to increase as well. ... Given that there is no change in the money supply, this increased demand for money leads to an increase in the interest rate. ... When the Fed increases the money supply, the policy is called expansionary. ... Under expansionary monetary policy the economy expands and output increases. ...
- Word Count: 3708
- Approx Pages: 15
- Has Bibliography
- Grade Level: High School