Multiple Choice
Which factor is an expansionary fiscal policy?
A) an increase in the money supply that decreases interest rates
B) an increase in taxes that reduces the budget deficit and decreases consumption
C) a decrease in government spending
D) an increase in unemployment benefits
Correct Answer:

Verified
Correct Answer:
Verified
Q19: Suppose that the economy is in an
Q20: Contractionary fiscal policy includes:<br>A) increasing government purchases.<br>B)
Q21: Contractionary fiscal policy shifts the aggregate demand
Q22: If overall spending declines and thus the
Q23: If there is a recessionary gap, discretionary
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