Question

What are the primary tools of fiscal policy? government spending and capital budgets interest rates and money supply operating budgets and contractionary policies government spending and taxation

Answer 1

Answer:

Fiscal policy refers to the use of the government budget to affect the economy. ... Generally, expansionary policy leads to higher budget deficits, and contractionary policy reduces deficits. An expansionary fiscal policy leads to higher budget deficits while a contractionary policy reduces deficits

Explanation:

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