Increased government spending and tax cuts characterize
A) contractionary fiscal policy.
B) expansionary fiscal policy.
C) expansionary monetary policy.
D) deflationary policy.
E) none of the above

Question

Quizplus · Accepted Answer

Increased government spending and tax cuts are both measures associated with expansionary fiscal policy, which is used to stimulate economic growth and is typically employed during times of recession or stagnation.

Increased Government Spending and Tax Cuts Characterize