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What is Fiscal Policy?

Posted in Glossary by Johns Wu
February 4, 2006 12:36 AM - 1 Comments

Fiscal Policy

Government policy on taxation, amount of spending, and priorities of public funds. This policy is a large input to the macroeconomic situation of a country as it also decides on the budgets of government units. Fiscal policy can affect consumer decisions based on tax rates, price stability, and business cycles. This government policy is also seen as an intervention by the government on the free market.

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