Expansionary fiscal policy uses ________ government spending and ________ taxes to increase aggregate economic activity.
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
Correct Answer:
Verified
Q125: Suppose the inflation rate target is zero
Q126: Contractionary fiscal policy leads to a _.
A)
Q127: Expansionary fiscal policy leads to a _.
A)
Q128: Which of the following is an example
Q129: An increase in taxes leads to a(n)_
Q131: Which of the following should be increased
Q132: Suppose the inflation rate target is zero
Q133: If the federal funds rate is set
Q134: A decrease in government expenditures leads to
Q135: Which of the following is an example
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