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Evaluate the potential of Fiscal Policy to overcome the negative macroeconomic effects of the RussianUkrainian war in Europe and the potential policy dilemma that may
Evaluate the potential of Fiscal Policy to overcome the negative macroeconomic effects of the RussianUkrainian war in Europe and the potential policy dilemma that may ensue. Focus on the consumption function and the role of the multiplier. Illustrate and explain how a new round of fiscal expansion in Europe due to the negative macroeconomic effects of the RussianUkrainian war could impact the bond market in terms of bond prices and bond yields, and explain the likely impact of this on interest rates across Europe
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