An Example of Expansionary Fiscal Policy Is

question 95

Multiple Choice

An example of expansionary fiscal policy is

• A) increasing government expenditures.
• B) increasing taxes.
• C) decreasing government expenditures.
• D) decreasing taxes.
• E) a and d

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Definitions:

Domestic Producers

Businesses or individuals within a country that produce goods or services.

Exports

Goods and services sold by a country to other countries.

Domestic Price

The cost of goods and services within a country, affected by local economic factors such as inflation, taxation, and supply and demand.

World Price

The global market price at which goods and services are bought and sold, reflecting the demand and supply in the international market.