Which of the following would be an example or result of expansionary fiscal policy in action?

Question

Quizplus · Accepted Answer

Expansionary fiscal policy involves increasing government spending or decreasing taxes to stimulate economic growth. A budget deficit occurs when government spending exceeds revenue, which is a result of expansionary fiscal policy. Therefore, choice C is the correct answer. A and B are examples of contractionary fiscal policy, which involves decreasing government spending or increasing taxes to slow down the economy. D is not necessarily an example of any type of fiscal policy as it depends on various factors such as economic growth, government policies, and external economic factors.

Which of the Following Would Be an Example or Result