A government using fiscal policy in an attempt to stimulate the economy would do which of the following?

Question

Quizplus · Accepted Answer

A government using fiscal policy to stimulate the economy would typically increase government spending. This increase in spending would lead to an increase in demand for goods and services, which in turn would lead to an increase in economic activity and potentially job creation. Raising taxes or interest rates would decrease consumer and business spending, leading to a decrease in economic activity.

A Government Using Fiscal Policy in an Attempt to Stimulate