ECO 372 Week 2 DQ 2

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- What is the difference between contractionary and expansionary fiscal policies? Which is more appropriate today? Explain your answer. How might contractionary and expansionary fiscal policies affect your organization?

Response
The differences between contractionary and expansionary fiscal policy are Information Expansionary fiscal policy is the government reacting to a change in the economy increases spending or reduces taxes in an effort to stimulate growth in the economy. The negative effect of this is increased debt and deficit.
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