An Expansionary Fiscal Policy Can Result in

question 322

Multiple Choice

An expansionary fiscal policy can result in

• A) higher unemployment rates.
• B) inflation and higher GDP.
• C) lower prices.
• D) a recession.

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Definitions:

CESA

Coverdell Education Savings Account, a tax-advantaged investment account in the U.S. designed to encourage savings for education expenses.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Tax-Free

Income or financial transactions that are exempt from taxation by the government.

Contract Holder

An individual or entity that owns an agreement or policy, particularly in contexts like insurance or investments.