First define the concept of an expansionary fiscal policy


First define the concept of an expansionary fiscal policy and present the two (2) policy tools which fiscal policy authorities could use (and specifically how) in order to pursue an expansionary fiscal policy. Next, define the concept of crowding-out and also explain what this concept implies as to the effectiveness of fiscal policy in general. Finally, explain which private sector components of planned expenditure (PE) are directly affected by crowding-out.

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Microeconomics: First define the concept of an expansionary fiscal policy
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