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What are the instruments of fiscal policy?

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Answer:

The government can change its expenditures and its tax collection in order to achieve full employment, control inflation, or encourage growth. By increasing taxes and reining in expenditures, it helps contract the economy. The government can lower taxes and spend more in order to expand the economy.

First answer by Suluclac. Last edit by Suluclac. Contributor trust: 0 [recommend contributor ]. Question popularity: 1 [recommend question].

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