Expansionary Fiscal Policy Occurs When

question 10

Multiple Choice

Expansionary fiscal policy occurs when:

• A) the government decreases spending or increases taxes to stimulate the economy toward expansion.
• B) the government decreases spending or decreases taxes to stimulate the economy toward expansion.
• C) the government increases spending or increases taxes to stimulate the economy toward expansion.
• D) the government increases spending or decreases taxes to stimulate the economy toward expansion.
• E) the Federal Reserve increases money supply to stimulate the economy toward expansion.