Solved: Combination of increase in spending and a reduction on taxes, Macroeconomics

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Combination of increase in spending and a reduction on taxes

Assignment:

'On the other hand, the expansionary fiscal policy plays a significant role in the stimulation of the economy such as during recessions through the increase in government expenditure, reducing the tax payable and increase in government subsidies...'

Good point. With the combination of increase in spending and a reduction on taxes, where would the money come from to stimulate the economy?

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Macroeconomics: Combination of increase in spending and a reduction on taxes

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Macroeconomics: Combination of increase in spending and a reduction on taxes

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