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

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Ayla Werner

11 October, 01:54

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

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Fido · Answer 1

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.