An expenditure-increasing policy would consist of an increase in:
A) Import tariffs
B) Import quotas
C) Governmental taxes
D) The money supply

Question

Quizplus · Accepted Answer

An increase in the money supply would lead to lower interest rates, which would encourage increased spending and investment in the economy, leading to an increase in overall expenditure. Import tariffs and quotas would restrict imports and decrease expenditure, while governmental taxes would take money out of the economy and also decrease expenditure.

An Expenditure-Increasing Policy Would Consist of an Increase In