Expansionary Fiscal Policy Is Used to

question 160

Multiple Choice

Expansionary fiscal policy is used to

• A)combat inflation.
• B)combat recessions.
• C)encourage private saving.
• D)make businesses more efficient.

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Definitions:

Demand For

Refers to the desire and ability of consumers to purchase goods or services at a given price.

Supply Of

The total amount of a specific good or service that is available to consumers, which can be influenced by factors such as price, production costs, and technology.

Potentially Efficient

A situation or condition that has the capability to achieve optimum productivity with minimal waste and expense.

Losses

Financial condition when a company's total costs exceed its total revenue, leading to a negative profit.