Which combination of fiscal policies would have the greatest expansionary effect on the economy?

Question

Quizplus · Accepted Answer

Option B combines increasing government expenditures, which directly injects money into the economy, with decreasing personal income taxes and providing an investment tax credit, both of which increase disposable income and incentivize investment. This combination is the most likely to stimulate economic activity by boosting both demand (through higher disposable income) and supply (through increased investment).

Which Combination of Fiscal Policies Would Have the Greatest Expansionary