Fiscal Policy
Free CFA Level I lesson in Economics. 12 min read, ~1,777 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. Tools: spending (transfers, current, capital) and taxes (direct, indirect). Spending hits demand faster; tax...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- fiscal policy
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