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8 November, 15:07

Expansionary fiscal policy is so named because it:

Select one:

a. Involves an expansion of the nation's money supply

b. Necessarily expands the size of government

c. Is aimed at achieving greater price stability

d. Is designed to expand real GDP

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Answers (1)
  1. 8 November, 16:09
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    Expansionary fiscal policy is the policy that aims at expanding the money supply into the economy - by tax cuts and increased government spending. The correct answer is this one: a. Involves an expansion of the nation's money supply
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