Expansionary Fiscal Policy Involves

question 34

Multiple Choice

Expansionary fiscal policy involves

• A)increasing government purchases or decreasing taxes.
• B)increasing taxes or decreasing government purchases.
• C)increasing the money supply and decreasing interest rates.
• D)decreasing the money supply and increasing interest rates.

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Definitions:

Objective

A goal or target that is aimed to be achieved, often used in planning and strategy contexts.

Compounded Semi-Annually

Interest on an investment that is calculated twice a year and added to the principal sum, affecting the total interest earned.

Economic Equivalent

A comparison of the economic attributes of two or more investment or financial scenarios to determine their relative value or financial impact.

Missed Payment

Failure to make a required payment by its due date.