Which of the Following Is an Example of an Expansionary

question 36

Multiple Choice

Which of the following is an example of an expansionary fiscal policy?

• A) the Fed selling government securities in the open market
• B) the federal government increasing the marginal tax rate on incomes above $200,000
• C) the federal government increasing the amount of money spent on public health programs
• D) the federal government reducing pollution standards to allow firms to produce more output

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Definitions:

Market Price

The present cost at which an item or service may be purchased or sold within a specific market.

Individual Transferable Quota (ITQ)

A policy tool that allocates the right to harvest a natural resource amount among users through transferable quotas.

Market Price

The price at which a good or service can be bought or sold in the open market, determined by supply and demand.