Expansionary fiscal policy would involve ________,whereas contractionary fiscal policy would involve ________.
A) increasing the money supply; increasing personal income taxes
B) increasing corporate income taxes; raising interest rates
C) increasing transfer payments; increasing corporate income taxes
D) increasing government purchases; increasing transfer payments

Question

Quizplus · Accepted Answer

Expansionary fiscal policy involves increasing transfer payments to stimulate the economy, while contractionary fiscal policy involves increasing corporate income taxes to reduce economic activity.

Expansionary Fiscal Policy Would Involve ________,Whereas Contractionary Fiscal Policy Would