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ella [17]
2 years ago
14

If a fiscal policy change is going to exert a stabilizing impact on the economy, it must?

Business
1 answer:
Vadim26 [7]2 years ago
7 0

If a fiscal policy change is going to exert a stabilizing impact on the economy, policy must add  stimulus to demand during a slowdown but  it should restraint the demand during an economic boom.

Fiscal policy is the policy in which the government spending and taxation  is used to influence the economy.

Governments generally use fiscal policy to promote strong as well as sustainable growth in the economy and reduce the poverty too.

The role and objectives of fiscal policy which gained importance during the recent global economic crisis is when the different governments stepped in to support financial systems.

Governments starts the growth, and also mitigate the impact of the crisis on vulnerable groups through the use of fiscal policy.

To know more about fiscal policy here:

brainly.com/question/27250647

#SPJ4

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