Negative Consequences of Expansionary Fiscal Policy?

Answer When a country's economy is struggling, its government may attempt to stimulate economic growth through expansionary fiscal policy. This is done by lowering tax rates and by increasing government s... Read More »

Top Q&A For: Negative Consequences of Expansionary Fiscal Po...

What is an expansionary monetary policy?

An expansionary monetary policy--also known as an "easy" or "loose" monetary policy--is a policy whereby the monetary authorities increase the money supply. This is done in order to boost economic ... Read More »

What is the difference between contractionary&expansionary monetary policy?

The difference between expansionary and contractionary monetary policy is the effect on a nation's money supply and availability of credit. Expansionary policy measures increase the money supply an... Read More »

What is fiscal policy&monetary policy?

Fiscal and monetary policy refer to two classes of economic policy that governments and central banks have at their disposal. Fiscal policy involves government use of its budget to affect the econo... Read More »

Procyclical Fiscal Policy?

During economic downturns, policymakers can take two approaches to address the lack of economic growth. While Keynesian economists support a countercyclical approach by lowering interest rates and ... Read More »