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Meaning of fiscal policy

 

 

 

Fiscal policy

 

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Business glossary

 

Meaning of term fiscal policy :

 

Fiscal policy is changes in the levels of taxation and government expenditure to try to influence the level of economic activity. An expansionary (or reflationary) fiscal policy could mean cutting levels of direct or indirect tax or increasing government expenditure while a contractionary (or deflationary) fiscal policy might involve the government increasing taxation and cutting government expenditure.

 

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Fiscal policy

 

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