ECO 201 Module 11: Discussion - Fiscal Policy 7474 unread replies.7474 replies. Directions Post your responses to the following discussion prompt: Contractionary Fiscal Policy has both positive and negative effects on a nation's economy given that the policies can move an economy out of recession but it can also cause crowding out. Explain why this statement is true and add whether or not you would support a balanced budget amendment After you have posted your response, review the posts of your other classmates. Respond to at least two of them (preferably to those who have not yet received responses), by identifying elements that perhaps the original posting may have overlooked or some considerations that should have been taken into account