Effects of Fiscal Policy

Research Paper (undergraduate) from the year 2010 in the subject Business economics - Economic Policy, grade: 1,3, University of applied sciences, Munich, language: English, abstract: This study is dealing with the topic fiscal policy. In the study a multi step approach is used to discuss this theme. In the first part the theory of fiscal policy is introduced. It will be explained how fiscal policy effects the economy and what are the effects of fiscal policy. In the second part at the example of U.S. it will be explained how fiscal policy was applied as a reaction to the financial crisis. In the last part the advantages and disadvantages of fiscal policy are presented. It will be also discussed if the governmental use of fiscal policy is an appropriate strategy in the current situation.