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What Is Fiscal Policy?

By Jeremy BowmanUpdated Mar 18, 2025 at 1:59 PM

Key Points

  • Fiscal policy involves government spending and tax measures impacting the economy and investor decisions.
  • Contrasting with monetary policy, fiscal policy is set by legislatures and affects stocks and market dynamics.
  • Investors should monitor fiscal policy changes, which can stimulate markets or adjust economic growth.

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