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artcher [175]
3 years ago
13

What is the difference between expenditure-dampening and expenditure-switching policies?

Social Studies
1 answer:
iVinArrow [24]3 years ago
7 0
Expenditure-dampening is a policy that is to reduce the demand in the economy and limit consumer spending. With the policies implemented, the government can increase taxes and interest rates. Expenditure-switching on the other hand is more on promoting or utilizing home produced goods than imports. They put tariffs on import goods and devaluing the exchange rates.
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