Which factor is an expansionary fiscal policy?
A) an increase in the money supply that decreases interest rates
B) an increase in taxes that reduces the budget deficit and decreases consumption
C) a decrease in government spending
D) an increase in unemployment benefits

Question

Quizplus · Accepted Answer

An increase in unemployment benefits is an expansionary fiscal policy because it puts more money in people's pockets, which they can use to increase consumption and stimulate the economy.

Which Factor Is an Expansionary Fiscal Policy