Discuss the effect of fiscal policy on inflation

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Reference no: EM133246655

Case: Fiscal Policy: Taking and Giving Away by Mark Horton and Asmaa El-Ganainy

Question 1: Discuss the effect of fiscal policy on interest rates and investment. Explain crowding out effect.

Question 2: Discuss the effect of fiscal policy on inflation.

Question 3: Discuss the effect of persistent fiscal stimulus on the economy in the long run.

Question 4: Describe the mechanism how changes in fiscal policy affect output and prices in the economy.

Reference no: EM133246655

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