Answer to Question #70131 in Economics for shahin

Question

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?

Answer 1

Dear shahin, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order