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THE MACROECONOMIC ENVIRONMENT

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA BT – FIA FBT › THE MACROECONOMIC ENVIRONMENT

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Ken Garrett.
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  • January 20, 2022 at 3:01 pm #647135
    bad2341
    Participant
    • Topics: 7
    • Replies: 1
    • ☆

    HOW ARE THE BUSINESS AFFECTED BY FISCAL AND MONETARY POLICY?

    January 20, 2022 at 7:33 pm #647152
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10194
    • ☆☆☆☆☆

    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.

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