An example of expansionary fiscal policy is
A) lowering taxes.
B) increasing taxes on everyone in the economy.
C) decreasing the number of weeks an individual can receive unemployment.
D) increasing taxes only on the top earners in the economy.
E) increasing minimum wage.

Question

Quizplus · Accepted Answer

Expansionary fiscal policy refers to measures taken by the government to stimulate the economy, typically during a recession. In this case, lowering taxes would increase disposable income, encouraging consumers to spend more and boosting demand in the economy.

An Example of Expansionary Fiscal Policy Is