Task 3: Answer the questions: 1) Who sets the monetary and fiscal policies? 2) Which tools are used for monetary and fiscal policies? 3) What are expectations for effective monetary and fiscal policies?

1) The monetary and fiscal policies are typically set by the central bank and the government of a country, respectively.<br /><br />2) The tools used for monetary policies include interest rates, reserve requirements, and open market operations. The tools used for fiscal policies include government spending, taxation, and borrowing.<br /><br />3) The expectations for effective monetary and fiscal policies are that they should help achieve macroeconomic goals such as price stability, full employment, and economic growth. They should also be coordinated and well-communicated to the public to ensure their effectiveness.