If the fiscal policy makers aim to increase aggregate demand, they will likely enact:

A. contractionary fiscal policy.
B. expansionary fiscal policy.
C. contractionary monetary policy.
D. expansionary monetary policy.

Answer: B

Economics

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Sellers in a perfectly competitive market make special arrangements to deal with particular customers and stand to lose value if their relationship with those customers ends

Indicate whether the statement is true or false

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The U.S. recession of 2007-2009 provides a good example of:

A. demand-pull inflation. B. cost-push inflation. C. a recessionary expenditure gap. D. the repercussions of hyperinflation.

Economics