video:
http://www.investopedia.com/terms/m/monetarypolicy.asp?lgl=no-infinite

Definition: the actions taken by a central bank to influence the country's monetary supply

Methods (loose or tight):
1. Buying and selling government bonds in Open Market Operations
2. Adjusting discount rate to top banks
3. Setting reserve requirements

Fiscal Policy Videohttp://www.investopedia.com/articles/04/051904.asp?ad=dirN&qo=investopediaSiteSe...

Definition: the combine governmental decisions regarding taxing (revenue) and spending (expenditure)

Methodology:
1. improving the employment rate
2. combating inflation
3. flattening business cycles

Effect:
1. lowering taxes raises take home pay in workers checks. They spend the money and spur the economy

2. use the tax money to build infrastructure (highways and roads, bridges, hospitals, schools

3. effective because money spent on infrastructure goes back into the economy

Link to Video: https://youtu.be/BwZzZdaKMDQ

Purpose: to control the money supply and regulate the US economy.

Goals;
1. maintain full employment (5%)
2. help determine interest rates for people wanting to buy homes
3. keep prices steady (control inflation)