The most common way for government to fund expansionary fiscal policy is by borrowing from the general public.

Question

Quizplus · Accepted Answer

When the government engages in expansionary fiscal policy, such as increasing government spending or cutting taxes to stimulate economic growth, they usually fund it through borrowing from the general public. This is typically done by issuing government securities, such as Treasury bills and bonds, which individuals and institutions can purchase. This borrowing adds to the national debt, but it is seen as a necessary measure to boost economic activity in the short term.

The Most Common Way for Government to Fund Expansionary Fiscal