Expansionary fiscal policy is used to
A) flight inflation.
B) fight recessions.
C) encourage private saving.
D) make businesses more efficient.

Question

Quizplus · Accepted Answer

Expansionary fiscal policy is used to fight recessions by increasing government spending and/or decreasing taxes, which can stimulate demand and economic activity. It is not used to fight inflation, encourage private saving, or make businesses more efficient.

Expansionary Fiscal Policy Is Used to