which of the following is an example of expansionary fiscal policy? increasing taxes decreasing government…

which of the following is an example of expansionary fiscal policy? increasing taxes decreasing government spending decreasing interest rates increasing government spending

which of the following is an example of expansionary fiscal policy? increasing taxes decreasing government spending decreasing interest rates increasing government spending

Answer

Answer:

Increasing government spending

Brief Explanations:

Expansionary fiscal policy aims to stimulate the economy. Increasing government spending injects more money into the economy, boosting aggregate demand. Increasing taxes is contractionary fiscal policy. Decreasing interest - rates is a monetary policy tool, not fiscal. Decreasing government spending is also contractionary.