ECO 372 Week 2 DQ 2

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What is fiscal policy and how does it differ from monetary policy? What is the difference between contractionary and expansionary fiscal policies? Which is more appropriate today (if either)? Explain your answer and expand on the unintended consequences of your answer. How might contraction and expansionary fiscal policies affect your organization?

Response :
Fiscal policy is a way that the government can control the economy by controlling spending and taxes in an effort to stimulate the economy. This is done by the governments action to slow the economy by introducing new taxes or increasing existing taxes. This creates spending barriers that work to slow a fast economy.
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