ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An expansionary policy means that the Federal Government is attempting to
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increase the nation’s money supply
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decrease the nation’s money supply
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Expansionary policy occurs when a monetary authority uses its procedures to stimulate the economy. An expansionary policy maintains short-term interest rates at a lower than usual rate or increases the total supply of money in the economy more rapidly than usual.
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