Examples of expansionary fiscal policy include increases in:
A) government spending.
B) income taxes.
C) the money supply.
D) interest rates.

Question

Quizplus · Accepted Answer

Expansionary fiscal policy is aimed at stimulating economic growth and increasing aggregate demand. Increasing government spending can lead to increased employment, income, and consumer spending, which can have a positive impact on the overall economy.

Answer: C 
 Increasing the money supply can also increase aggregate demand by lowering interest rates and promoting borrowing and investment. This can lead to increased consumer spending and business activity.

Therefore, the best choices are A and C.

Examples of Expansionary Fiscal Policy Include Increases In