Which two of the following are examples of expansionary fiscal policy?
A) Lower interest rates
B) An increase in VAT
C) An increase in government expenditure
D) A cut in the basic rate of income tax

Question

Quizplus · Accepted Answer

Expansionary fiscal policy involves increasing government spending (C) and reducing taxes (D) to stimulate economic growth. Lowering interest rates (A) is a monetary policy tool, and increasing VAT (B) is a contractionary fiscal measure.

Which Two of the Following Are Examples of Expansionary Fiscal