Discussion Post: The Role of Fiscal Policy in the Economy
• Discuss the effect of fiscal policy on interest rates and investment. Explain crowding out effect.
• Discuss the effect of fiscal policy on inflation.
• Discuss the effect of persistent fiscal stimulus on the economy in the long run.
• Describe the mechanism how changes in fiscal policy affect output and prices in the economy.
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.