Answer to Question #269412 in Economics for Muhammad Ali

Question #269412

How can financial and fiscal policy help promote development


1
Expert's answer
2021-11-22T10:09:01-0500

Fiscal policy can promote macroeconomic stability by sustaining aggregate demand and private sector incomes during an economic downturn and by moderating economic activity during periods of strong growth. ... This helps economic agents to form correct expectations and enhances their confidence.


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