An _ policy is employed when the government chooses to run a larger deficit

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Kaya Brooks

12 July, 03:34

An _ policy is employed when the government chooses to run a larger deficit

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Jaylin Trujillo · Answer 1

An expansionary policy is employed when the government chooses to run a larger deficit.

In order to stimulate the economy, the central bank implement an expansionary monetary policy that increases the money supply, lowers interest rates, and increases aggregate demand. It fosters growth as measured by gross domestic product.

It is the opposite of contractionary monetary policy.

Sharon Macdonald · Answer 2

an _ policy is employed when the government chooses to run a larger deficit?

expansionary