What effect do expansionary monetary and fiscal policies have on the economy?

Question

Quizplus · Accepted Answer

Expansionary monetary and fiscal policies are designed to stimulate economic growth by increasing the money supply, reducing interest rates, and boosting government spending. This can increase consumer and business spending, which can lead to increased production and hiring. By increasing economic activity, these policies can minimize the severity of recessions and help to prevent or mitigate economic slowdowns. Therefore, the correct answer is A) They reduce the severity of recessions.

What Effect Do Expansionary Monetary and Fiscal Policies Have on the Economy