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Fiscal policy does not involve the manipulation of interest rates; that is the domain of monetary policy, which is managed by central banks. Additionally, fiscal policy is not solely focused on short-term economic stabilization; it also aims to influence long-term economic growth through government spending and tax policies. Finally, fiscal policy is not universally effective in all economic conditions, as its impact can be limited by factors like consumer confidence and pre-existing debt levels.

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4d ago

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