Expansionary fiscal or monetary policy could cause a country to

Question

Quizplus · Accepted Answer

Expansionary fiscal or monetary policy involves increasing government spending or lowering interest rates to stimulate economic growth. This increased growth can lead to the country growing faster than other countries. Option A is incorrect as slower growth would not be the intended result of expansionary policies. Option C may or may not occur depending on other factors such as exchange rates and international trade agreements. Option D is not a likely outcome of expansionary policies as they aim to increase inflation rather than deflation.

Expansionary Fiscal or Monetary Policy Could Cause a Country to