Expenditure switching policies are best used on their own.

Question

Quizplus · Accepted Answer

Expenditure switching policies are most effective when used in combination with expenditure changing policies. Expenditure switching policies alone might redirect demand towards domestic goods and services, but they might not increase overall demand in the economy. This could result in a negative impact on the overall economic growth and development. Therefore, it is recommended to use expenditure switching policies in conjunction with other fiscal and monetary policies.

Expenditure Switching Policies Are Best Used on Their Own