An example of expansionary fiscal policy could be
A)to reduce the nation's money supply.
B)to reduce taxes.
C)to reduce government spending.
D)to reduce interest rates.

Question

Quizplus · Accepted Answer

Expansionary fiscal policy is designed to stimulate economic growth and decrease unemployment. One way to do this is to reduce taxes, which puts more money in the hands of consumers and businesses, leading to increased spending and investment.

An Example of Expansionary Fiscal Policy Could Be