What is the fiscal policy equivalent of a 0.5 percent cut in long-term interest rates?

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25-11-2017
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What is the fiscal policy equivalent of a 0.5 percent cut in long-term interest rates?

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meerkat18 meerkat18 · Answer 1 · 2017-12-07T09:53:01+01:00

meerkat18 meerkat18

07-12-2017

The Fiscal stimulus is the fiscal policy equivalent of a 0.5 percent cut in long-term interest rates. It refers to the increasing government consumption or transfers or lowering taxes which means increasing the rate of growth of the public debt.

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