Which of the following is considered expansionary fiscal policy?
A) Parliament decreases the income tax rate.
B) The federal government increases defence spending.
C) Legislation increases a university tuition deduction from federal income taxes.
D) The Alberta legislature cuts highway spending to balance its budget.
E) The Ontario government increases electricity bills to encourage energy conservation.
Correct Answer:
Verified
Q61: Tax increases on business income decrease aggregate
Q62: Figure 12.3 Q64: Lowering the personal income tax will increase Q65: If the economy is growing beyond potential Q65: Expansionary fiscal policy involves increasing government purchases Q67: Decreasing government spending _ the price level Q69: Expansionary fiscal policy will
A)shift the aggregate demand
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