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Government Fiscal and Monetary Policy Implementation

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What are the things that influence our spending during a slow economy such as we are experiencing right now?

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Solution Summary

The solutions shows the monetary and fiscal policy to employ during an economic slowdown.

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During either slowdown or surge in the economy, the federal government applies its power of fiscal (adjusting the level of spending) and monetary policies (controlling money supply).

During an economic crisis, the government may simply cut tax rates. On the part of the business sector, cutting the tax rate will enable it to gain enough ...

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