Fiscal policy refers to the use of government spending and tax policies to influence economic conditions. It involves adjustments in government expenditures and rates of taxation to manage the economy. Fiscal policy can be used to stabilize the economy over the course of the business cycle. For instance, during recessions, the government might lower tax rates and increase spending to stimulate economic growth.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
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