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What are the two tools of fiscal policy that governments can use to stabilize an economy?
Wiki User
∙ 11y ago
government spending and taxation
Wiki User
∙ 11y ago
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What is the way governments use taxes and spending to stabilize the economy called?
Fiscal Policy
What are the Measure that the federal government takes to stabilize the economy?
fiscal policy
What is the main goal of both fiscal and monetary policy?
The main goal of both fiscal and monetary policy is to stabilize the economy.
Governmental fiscal policy?
Governments do not influence fiscal policies, only monetary policy - Expansionary fiscal policy, where money is injected into the economy to create activity. - Contractionary fiscal policy, where money is withheld from the economy in the hope to control or even reduce inflation.
When do Discretionary fiscal policy will stabilize the economy most?
deflicts are incurred during recession and surpluses during inflaions.
What is the way governments use taxes and spending to stabilize the economy called?
Fiscal Policy
Measures that the federal government takes to stabilize the economy are .?
fiscal policy
What are the Measure that the federal government takes to stabilize the economy?
fiscal policy
What is the main goal of both fiscal and monetary policy?
The main goal of both fiscal and monetary policy is to stabilize the economy.
Governmental fiscal policy?
Governments do not influence fiscal policies, only monetary policy - Expansionary fiscal policy, where money is injected into the economy to create activity. - Contractionary fiscal policy, where money is withheld from the economy in the hope to control or even reduce inflation.
When do Discretionary fiscal policy will stabilize the economy most?
deflicts are incurred during recession and surpluses during inflaions.
What is the impact of fiscal policy?
Fiscal policy is used by governments to influence the level of aggregate demand in the economy, in an effort to achieve economic objectives of price stability, full employment and economic growth.
Fiscal policy and monetary policy?
fiscal is the governments budget in terms of spending and expenditure. so there can either be a budget deficit or a budget surplus. when there is a budget surplus, government use a contractionary fiscal policy, and when there is a deficit, they use an expansionary fiscal policy. Monetary policy is used to combat an economy growing to quickly and inflation is rising. in most countries this is the Official Cash Rate. There is a tight monetary policy which government can impose if the economy is growing rapidly and this is used to constrict spending within that economy
The way the government uses taxes and spending to stabilize the economy is called what?
Fiscal policy is the way the government uses taxes and spending to stabilize the economy. It is based on the theories of British economist John Maynard Keynes, also known as Keynesian economics.
The way the government uses taxes and spending to stabilize the economy is called .?
Fiscal policy is the way the government uses taxes and spending to stabilize the economy. It is based on the theories of British economist John Maynard Keynes, also known as Keynesian Economics.
Which fiscal policy strategy would the federal government most likely use to stablize the economy?
The fiscal policy strategy that the Federal government would most likely use to stabilize the economy during times of inflation is to raise taxes. However, they could also decrease government spending.
Government's efforts to stabilize the business cycle through fiscal policy can destabilize the economy due to the presence of what?
lags in the process of crafting a budget appropriate to the circumstances.
