Expansionary fiscal policy is used to
A)combat inflation.
B)combat recessions.
C)encourage private saving.
D)make businesses more efficient.

Question

Quizplus · Accepted Answer

Expansionary fiscal policy is typically used to combat recessions by increasing government spending and/or decreasing taxes in order to stimulate consumer and business spending. This can lead to increased economic activity and job growth.

Expansionary Fiscal Policy Is Used to