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What is the importance of fiscal policy during times of economic recession?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles

Section: Chapter Questions

Problem 10E

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Question

What is the importance of fiscal policy during times of economic recession?

What is the reason why fiscal policy should be in tune with monetary policy when the economy is in the recession phase?

What is the importance of the Central Bank in the financial market?

Definition Definition Policy implemented by the central bank of a country (such as the Federal Reserve in the United States) to achieve certain macroeconomic objectives. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.

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