An intended goal of expansionary fiscal policy and an easing of monetary policy is
A) an increase in interest rates.
B) an increase in the price level.
C) the equalization of the distribution of income.
D) an increase in the level of aggregate output.

Question

Quizplus · Accepted Answer

The intended goal of expansionary fiscal policy and easing of monetary policy is to increase aggregate demand and stimulate economic growth. This is typically achieved through government spending increases, tax cuts, and/or lower interest rates. These policies aim to increase consumption and investment, which in turn leads to an increase in the level of aggregate output.

An Intended Goal of Expansionary Fiscal Policy and an Easing