Answer:
Fiscal and Monetary policies
Explanation:
Monetary policies are the activities by the Federal Reserve(central bank) of regulating and controlling the money supply in the economy. Some of the monetary policies the central bank uses include the federal fund rate, the discount rate, reserve requirements, interest on reserves, and the open market operations. The objective is to influence the economic growth rate and stabilize prices.
Fiscal policies refer to the government decisions on spending and taxation to achieve the desired macroeconomic goals. An increase or decrease in government spending and taxation have a great impact on economic activities. Fiscal policies are combined with monetary policies to drive the economy in the intended direction.
