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Sonny Bates
Law
28 February, 19:15
Why does the government change fiscal policy?
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Aryanna Raymond
28 February, 19:23
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Fiscal policy also changes the burden of future taxes. When the government runs an expansionary fiscal policy, it adds to its stock of debt. Because the government will have to pay interest on this debt (or repay it) in future years, expansionary fiscal policy today imposes an additional burden on future taxpayers.
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Louis Duke
28 February, 19:41
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A change in fiscal policy has a multiplier effect on the economy because fiscal policy affects spending, consumption, and investment levels in the economy ... The overall effect on the economy is the same as when the government seeks to target and improve aggregate demand.
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