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Investment may increase when companies anticipate stronger growth prospects as a result of a fiscal stimulus, even if this causes interest rates to increase.

Fiscal policy is the word used to describe how the government uses spending and taxation to affect the economy. Governments frequently use fiscal policy to encourage long-term growth and combat poverty. The role and objectives of fiscal policy became more obvious as governments intervened to stabilize financial institutions, spur growth, and lessen the impact of the crisis on vulnerable populations. The leaders of the Group of 20 industrialized and developing market nations stated in the communiqué that they were pursuing "unprecedented and concerted budgetary growth" following their summit in London in April 2009.

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