Which of the following is an example of an expenditure-increasing policy?
A) an increase in import tariffs
B) a decrease in import quotas
C) higher income taxes
D) an increase in the money supply

Question

Quizplus · Accepted Answer

An increase in the money supply can lead to an increase in aggregate demand, which can shift the production possibilities frontier outward, allowing for greater output and potentially higher economic growth. An increase in import tariffs (A) would likely decrease aggregate demand, while a decrease in import quotas (B) would increase the availability of foreign goods and could lead to lower domestic production. Higher income taxes (C) would also decrease aggregate demand by reducing consumers' disposable income.

Which of the Following Is an Example of an Expenditure-Increasing