The decision to build more trains to keep employment high is an example of:
A) expansionary monetary policy.
B) expansionary fiscal policy.
C) neutral fiscal policy.
D) infrastructure policy.

Question

Quizplus · Accepted Answer

The decision to build more trains in order to keep employment high is an example of expansionary fiscal policy. Fiscal policy refers to the government's use of spending and taxation policies to influence the economy. In this case, the government is increasing spending (by building more trains) in order to stimulate economic growth and create jobs. This is expansionary fiscal policy because it is designed to expand the overall level of economic activity.

The Decision to Build More Trains to Keep Employment High