Fiscal and Monetary Policy (AP Government and Politics)

Tom Richey explains fiscal policy and monetary policy for students who are taking AP Government and college-level courses in American Government. Fiscal policy, which is set by Congress, involves policies about taxes, spending, and the federal budget. Monetary Policy, which is set by the Federal Reserve Board of Governors, regulates interest rates and the money supply.

Thumbnail Photo by Pictures of Money (Flickr)

Tom Richey,