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Thank you We sneak and here's your shmoop du jour

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Brought to you by fish eagle policy law of the

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sea fiscal policy Uh what And here potential answers way

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stretched on the fish girl thing but you try to

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make jokes out of fiscal really hard All right a

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lot of utilizing going on here anyone has ideas Okay

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well here we go Ever since the great depression the

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government's played up pretty well great role in the economy

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This sort of top bill award winning performance involves two

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different pieces Monetary policy and fiscal policy Will this fiscal

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policy a utilized interest rates and the money supply Well

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that sounds more like monetary policy which is set by

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the federal reserve and involves managing interest rates bond purchases

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and the flow of cash money into the economy by

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adjusting interest rates The federal reserve which is our nation's

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central bank can affect people's willingness to borrow and lend

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money which could help stimulate the economy and slow times

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or slow down spending in high times Same goes for

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control over the money supply which basically means how many

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of those dollars dollar bills y'all are printed and circulated

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At any given moment it's off the federal reserve is

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controlling monetary policy who's calling the shots on fiscal policy

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well fiscal policy is set that is if they can

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agree by congress and the president Every year the president

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sends a budget to congress outlining to major goal how

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the government will spend its money and where the government

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will get its money Some government spending like social security

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and medicare is mandatory meaning the government has to make

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the payments each year Some spending though is discretionary meaning

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that lawmakers have some say over who gets how much

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what when where now where does all this money come

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from No not george washington's wouldn't tooth fairy it comes

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from taxes each year the government collects taxes on individuals

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and businesses in orderto help fund government spending But a

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big part of fiscal policy is determining just how high

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or low those tax rates will be So if fiscal

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policy involves government spending levels and tax rates that makes

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e the right answer right there politicians tend to make

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a whole bunch of promises when they're running for office

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but when it comes to the grim reality of deciding

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our nation's fiscal policy Well they really have to put 00:02:21.655 --> [endTime] taxpayers money where their mouth is

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