During an election year,the federal government would mostly likely increase _____.

Question

Quizplus · Accepted Answer

During an election year, the federal government typically increases its purchases of goods and services to boost economic growth and job creation, thus improving its chances of re-election. This is often referred to as "fiscal stimulus." Increases in tax rates, interest rates, the discount rate charged to commercial banks, or the minimum reserve requirement of commercial banks are not typically used as tools during an election year, as they could potentially harm the economy and negatively impact the incumbent party's chances of winning.

During an Election Year,the Federal Government Would Mostly Likely Increase