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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA BT – FIA FBT › THE MACROECONOMIC ENVIRONMENT
HOW ARE THE BUSINESS AFFECTED BY FISCAL AND MONETARY POLICY?
See our notes: pps 127 and 128.
If the Government spends more money (fiscal policy), businesses will benefit as more work is available either directly or by more government employees spending.
If the government makes it more difficult or expensive to raise money then individuals and businesses will find it harder to get money to spend and he economy will cool.
