Another form of expansionary fiscal policy in addition to government spending is:
A) a subsidy.
B) a tax rebate.
C) unemployment insurance.
D) a welfare program.

Question

Quizplus · Accepted Answer

A tax rebate involves the government providing a one-time or ongoing decrease in taxes for individuals or businesses. This puts more money in people's pockets, increasing their disposable income and allowing them to spend more. This increase in spending stimulates economic growth and can help combat a recession. Therefore, a tax rebate is another form of expansionary fiscal policy.

Another Form of Expansionary Fiscal Policy in Addition to Government