Which of the following actions is an example of fiscal policy that aims to stimulate economic activity?
A) an increase in spending on road works
B) a purchase of government securities in the open market
C) elimination of certain income tax deductions
D) a reduction in interest rates

Question

Quizplus · Accepted Answer

Increasing government spending, such as on road works, is a fiscal policy measure aimed at stimulating economic activity by directly injecting money into the economy and creating jobs.

Which of the Following Actions Is an Example of Fiscal