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
1
Expert's answer
2012-05-11T08:33:16-0400
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
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