Page 19 - FINAL CFA I SLIDES JUNE 2019 DAY 6
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Session Unit 5:
18. Monetary and Fiscal Policy
LOS 18.s: Determine whether a fiscal policy is expansionary or contractionary,p.125
An increase (decrease) in budget surplus is indicative of a contractionary (expansionary)
fiscal policy.
Similarly, an increase (decrease) in deficit is indicative of an expansionary (contractionary)
fiscal policy.
LOS 18.t: LOS 18.t: Explain the interaction of monetary and fiscal policy, p.125
