Fiscal Policy

Free CFA Level I lesson in Economics. 13 min read, ~1,956 words.

Monetary policy = central bank, interest rates, money supply. Fiscal policy = government, taxes and spending. Fiscal policy works through aggregate demand: G up or T down expands demand; G down or T up contracts it. Fiscal objectives are public goods, redistribution, stabilization, and long-run growth. Tools: spending (transfers, current...

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