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

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asked Aug 21, 2018 185k views

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Jsol · Answer 1 · 2018-08-27T01:03:28+0000

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.

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

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