Fiscal policy, the means by which the Canadian government imposes taxes on individuals and corporations and spends its money, has an impact on spending and thus an impact on the stock of some companies.

Question

Quizplus · Accepted Answer

Fiscal policy, which includes taxation and government spending, has an impact on consumer and business spending. This, in turn, can affect the stock prices of some companies. For example, if the government increases taxes, consumers may have less disposable income to spend, which could negatively impact businesses that rely on consumer spending. On the other hand, if the government increases spending on infrastructure projects, it may benefit companies that provide goods or services for those projects.

Fiscal Policy, the Means by Which the Canadian Government Imposes