Expansionary fiscal policy includes:
A) increasing taxes.
B) increasing the money supply.
C) decreasing government expenditures.
D) increasing government expenditures.

Question

Quizplus · Accepted Answer

Expansionary fiscal policy involves increasing government expenditures to stimulate economic growth and increase aggregate demand. Options A and C involve decreasing government involvement in the economy, which would be contractionary fiscal policy. Option B involves monetary policy, not fiscal policy.

Expansionary Fiscal Policy Includes