fiscal multipliers

How Does Fiscal Policy Affect Supply-side?

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How Does Fiscal Policy Affect Supply-side? However, supply-side effects of fiscal policy can have short-term demand-side consequences because of expectations that longer-term growth will be higher. If a fiscal expansion is imparted through tax cuts and spending increases that are good for the supply side, this will tend to increase fiscal multipliers. How does fiscal

What Is The Crowding Out Effect And Why Might It Be Relevant To Fiscal Policy?

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What Is The Crowding Out Effect And Why Might It Be Relevant To Fiscal Policy? What is the crowding-out effect, and why might it be relevant to fiscal policy? The crowding-out effect is the reduction in investment spending caused by the increase in interest rates arising from an increase in government spending, financed by borrowing.