Which of the Following Would Be an Example of an Expansionary

question 71

Multiple Choice

Which of the following would be an example of an expansionary fiscal policy?

• A)An increase in taxes
• B)A decrease in government purchases
• C)An increase in government purchases
• D)An increase in the reserve requirement ratio
• E)An increase in the discount rate

---

Definitions:

Contribute

To give something, such as time, money, or knowledge, towards a common goal or cause.

Benefit

The advantage or profit gained from something, often used in the context of analyzing economic decisions.

Second Job

Additional employment taken by an individual besides their primary job, often to supplement income.

Full Time

Employment status in which an individual works a minimum number of hours defined by their employer, typically at least 35 to 40 hours per week.