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NilsH

How do monetary and fiscal policies affect the automobile industry

Sunni:

I will only give you this much and you take a good look at them and decide the answer to your Q.
Fiscal policy-
relates to the saving and spending in the
economy. Governments influence fiscal policy through spending and taxation.
Monetary policy-
relates to our money supply and credit. Again, monetary policy
is controlled with interest rate management. Even though these two policies are
controlled by different agencies, they are related. A key is the interest
rates. As interest rates are raised (monetary policy), new government debt
(what the government is buying) will cost more thus increasing the amount spent.
Spending in the economy is fiscal policy. This impacts business because of the
amount that the government is willing to spend and the amount of actual money
being placed into the economy.
I don't know if this helps but I tried to help you with your homework as much as I dare.

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