Expansionary fiscal policy occurs when:
A) the government decreases spending or increases taxes to stimulate the economy toward expansion.
B) the government decreases spending or decreases taxes to stimulate the economy toward expansion.
C) the government increases spending or increases taxes to stimulate the economy toward expansion.
D) the government increases spending or decreases taxes to stimulate the economy toward expansion.
E) the Federal Reserve increases money supply to stimulate the economy toward expansion.
Correct Answer:
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