Consolidated government expenditure is expected to grow 7.1 per cent over the medium term, reaching R 1.69 trillion in 2018/19. At this rate, spending growth will outpace inflation by 0.8 per cent. (Source:www.treasury.gov.za).
1. Describe the main instruments of fiscal policy that are available to government.
2.Drawing from the statement above, how can government finance increased expenditure?
3. What are the possible negative effects of 2 above?
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