Expansionary fiscal policy consists of:
a. increasing government spending.
b. increasing payroll taxes to finance health care.
c. decreasing government spending.
d. raising the minimum wage.
a
You might also like to view...
The dollar will depreciate against the euro when the European Central Bank raises interest rates
Indicate whether the statement is true or false
According to Keynesians, for monetary policy to have a stimulative effect on GDP, a(n):
a. increase in the money supply lowers the interest rate in order to stimulate higher levels of investment. b. increase in the money supply lowers the interest rate in order to lower levels of investment. c. decrease in the money supply lowers interest rate in order to stimulate higher levels of investment d. decrease in the money supply causes the interest rate to rise in order to stimulate higher levels of investment. e. increase in the money supply causes the interest rate to rise in order to stimulate higher levels of investment.