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What role does the government play in developing fiscal policy?

Benjamin Yarmouth

The government plays a big role in making a plan for how to use money for things that help the country, like building roads or giving people healthcare. This plan is called fiscal policy. The government can use this plan to try to keep the economy healthy, which means more people can have jobs and businesses can do well.

The government makes decisions about how much money to spend on different things and where to get the money from. Sometimes they decide to get money by collecting taxes from people and businesses. Other times they might borrow money from banks or other countries. They have to be careful not to borrow too much money, though, because they have to pay it back with interest.

When the government wants to make changes to the fiscal policy, they will often discuss it with experts and other people who know a lot about money and the economy. They might also talk to regular people to get their thoughts and opinions. Then they will make a new plan and try to put it into action.

Overall, the government is responsible for making decisions about how to use money in a way that will help the country. This is called fiscal policy, and it can have a big impact on things like jobs, businesses, and the economy as a whole.