Which of the following is considered 'expansionary fiscal policy'?
A)The government decreases the income tax rate.
B)The government increases defence spending due to a change in priorities.
C)Legislation that increases education expense deductions from federal income taxes.
D)A state (not federal)government cuts highway spending to balance its budget.

Question

Quizplus · Accepted Answer

Decreasing the income tax rate is an expansionary fiscal policy as it increases disposable income for consumers, encouraging spending and stimulating economic growth.

Which of the Following Is Considered 'Expansionary Fiscal Policy