Question #8988
Which of the following would not be an expansionary fiscal policy?
Increased welfare payments to the poor
Decreases in federal taxes on corporations
A balanced budget
Increased government expenditures on goods and services
Increased welfare payments to the poor
Decreases in federal taxes on corporations
A balanced budget
Increased government expenditures on goods and services
Expert's answer
A balanced budget
Expansionary fiscal policy is a stimulating policy. The main instruments of this policy are:
- Decrease taxes
- Increase government expenditures
Increased welfare payments to the poor, Decreases in federal taxes on corporations, increased government expenditures on goods and services all these step is a instruments of stimulating fiscal policy, so a balanced budget is not instrument of expansionary fiscal policy
Expansionary fiscal policy is a stimulating policy. The main instruments of this policy are:
- Decrease taxes
- Increase government expenditures
Increased welfare payments to the poor, Decreases in federal taxes on corporations, increased government expenditures on goods and services all these step is a instruments of stimulating fiscal policy, so a balanced budget is not instrument of expansionary fiscal policy
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#339914 on Dec 2023
#339914 on Dec 2023
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