Which of the following represents expansionary fiscal policy?

Question

Quizplus · Accepted Answer

A decrease in average individual income tax rates would result in people having more money to spend, thereby increasing aggregate demand and stimulating economic growth. This is an example of expansionary fiscal policy, as the government is trying to increase economic activity by increasing spending or lowering taxes. The other options listed are contractionary fiscal policies, as they would decrease aggregate demand and potentially slow down economic growth.

Which of the Following Represents Expansionary Fiscal Policy