Multiple Choice
Which of the following is considered 'expansionary fiscal policy'?
A) The government decreases the income tax rate.
B) The government increases defence spending due to a change in priorities.
C) Legislation that increases education expense deductions from federal income taxes.
D) A state (not federal) government cuts highway spending to balance its budget.
Correct Answer:

Verified
Correct Answer:
Verified
Q130: To counteract the effect of automatic stabilisers
Q131: Which of the following is a government
Q132: 'Fiscal policy' (discretionary fiscal policy)is defined as
Q133: Refer to Figure 13.3 for the following
Q134: Explain why accurately timing the fiscal policy
Q136: Slow growth in aggregate demand leads to
Q137: Both Milton Friedman and Edmund Phelps argued:<br>A)there
Q139: Refer to Figure 13.4 for the following
Q140: Explain how lowered taxes on capital gains
Q217: What is the difference between federal purchases