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Expansionary Fiscal Policy: Overview, Risks, Example

By Frank Bass – Apr 2, 2025 at 7:13PM

Key Points

  • Expansionary fiscal policies include increased federal spending, reduced taxes, and direct payments.
  • Issues like inflation and budget deficits often arise from these policies.
  • Despite drawbacks, these policies can boost trust in government during downturns.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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