Which of the Following Represents the Most Expansionary Fiscal Policy

question 41

Multiple Choice

Which of the following represents the most expansionary fiscal policy?

• A)a $10 billion tax cut
• B)a $10 billion increase in government spending
• C)a $10 billion tax increase
• D)a $10 billion decrease in government spending

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Definitions:

Journal Entries

Records of financial transactions in the chronological order made in the accounting journals.

Petty Cash Fund

A small amount of cash on hand used for paying minor expenses, managed through a system of replenishment.

Misc. Expense

Miscellaneous Expenses, generally small or irregular costs that don't fit into other categories of a company's financial statements.

Petty Cash Fund

A small amount of cash kept on hand for minor, incidental expenses.