This document provides an overview of a presentation on policy, fiscal policy, and monetary policy. It includes the following key points: 1) The group members presenting are listed along with their student IDs. 2) The presentation will cover what policy is, why governments use it, what fiscal policy is, the tools of fiscal policy, and when governments apply fiscal and monetary policy. 3) Fiscal policy involves adjusting government spending and tax rates to influence the economy, while monetary policy controls the money supply through interest rates.

1. Presentation Topic
Policy , Fiscal Policy and
Monetary Policy

2. Group Members
o Al Ikhlas Rahman ---------------142-15-3742
o Mehnaz Tabassum Moutoshi -------142-15-3587
o Faisal Kabir -------------------142-15-3952
o Neaz Morshed -------------------142-15-3462
o Badhon Roy ---------------------142-15-4087

3. Overview of our Presentation
 What is Policy
 Why Does Government Use Policy
 What is Fiscal Policy
 Tools Of fiscal policy
 When Does Government apply Fiscal Policy?
 When Does Government apply Monetary Policy?

4. What is Policy
The actions that governments take in
the economic field is called Policy.

5. Why Does Government Use Policy
Government uses policy in response to
economic conditions and to tackle a wide
range of issues.

6. What is Fiscal Policy
Fiscal policy is the means by which a
government adjusts its spending levels
and tax rates to monitor and influence a
nation's economy.

7. Tools Of fiscal policy
Taxation:
The first tool is taxation. Taxes
provide the major revenue source that
funds the government. The downside of
taxes is that whatever or whoever is
taxed has less income to spend
themselves.

8. Tools Of fiscal policy
Government Spending:
The second tool is
government spending. That includes
subsidies, welfare programs, public
works projects and government salaries.
Whoever receives the funds has more
money to spend. That increases demand
and economic growth.

9. When Does Government apply
Fiscal Policy?

10. Expansionary Fiscal policy If the economy is a bit sluggish
and people are not spending very much so that businesses are
not growing then the government applies Expansionary Fiscal
policy which involves government attempts to increase
aggregate demand (AD=C+I+G+X-M). It will involve higher
government spending or lower tax and this will lead to
higher economic growth.
Expansionary Fiscal policy:

11. If the economy is doing particularly well and growing
significantly the government may be worried that there is a
risk of inflation (consistent and persistent increase in
price level) so they may want to gently slow down how much
people are spending. They can do so by increasing tax level
and reducing spending which is called Contractionary Fiscal
Policy.
Contractionary Fiscal policy:

12. What is Monetary Policy
Monetary policy is the process by which
the monetary authority of a country
controls the supply of money, often
targeting an inflation rate or interest
rate to ensure price stability.

13. When Does Government apply
Monetary Policy?

14. A policy by monetary authorities to expand money supply and
boost economic activity, mainly by keeping interest rates
low to encourage borrowing by companies, individuals and
banks.
A Expansionary Monetary Policy

15. Contractionary Monetary Policy is a form of economic policy
used to fight inflation which involves decreasing the money
supply in order to increase the interest rate which in turn
decreases inflation.
Contractionary monetary policy

16. THANK YOU