Read the articles below

• Fiscal Policy: Economic Effects

https://fas.org/sgp/crs/misc/R45723.pdf

• Fiscal Policy: Taking and Giving Away by Mark Horton and Asmaa El-Ganainy

https://www.imf.org/external/pubs/ft/fandd/basics/fiscpol.htm

1. Discuss the effect of fiscal policy on interest rates and investment. Explain crowding out effect.
2. Discuss the effect of fiscal policy on inflation.
3. Discuss the effect of persistent fiscal stimulus on the economy in the long run.
4. Describe the mechanism how changes in fiscal policy affect output and prices in the economy.
5. Reflection- what was learned from the assignment and how could this apply in the workplace or everyday life.