fiscal neutrality

fiscal neutrality definition - business

fiscal neutrality

A combination of government spending and taxing that produces no net impact on aggregate demand. For example, a balanced budget or an increase in government spending matched by an equal increase in taxation can be viewed as fiscally neutral.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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