Expansionary fiscal policy includes
A) increasing taxes and increasing government purchases.
B) lowering interest rates, decreasing taxes and increasing transfer payments.
C) decreasing taxes and increasing government expenditures.
D) lowering the interest rates, decreasing taxes and decreasing government spending.
Ans: C) decreasing taxes and increasing government expenditures.
You might also like to view...
In the nation's financial markets, what are the various ways a firm can obtain financial capital?
What will be an ideal response?
If the real exchange rate between the U.S. and Japan is 1, the nominal exchange rate is 100 yen per U.S. dollar and the price of chicken in the U.S. is $2.50 per pound, what is the price of chicken in Japan?
a. 400 yen per pound b. 250 yen per pound c. 100 yen per pound d. 40 yen per pound