An expansionary fiscal policy is likely to _____ a government budget surplus (or increase a
Budget deficit)and ______ borrowing by the Treasury which will _____ bonds.

Question

Quizplus · Accepted Answer

An expansionary fiscal policy involves increasing government spending or decreasing taxes, which typically decreases a budget surplus or increases a budget deficit. This requires the government to borrow more, leading to the Treasury selling more bonds to finance the deficit.

An Expansionary Fiscal Policy Is Likely to _____ a Government