ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Contractionary policies
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Monetary policies
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Expansionary policies
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Fiscal policies
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Detailed explanation-1: -Expansionary fiscal policy is when the government increases the money supply in the economy using budgetary instruments to either raise spending or cut taxes-both having more money to invest for customers and companies.
Detailed explanation-2: -The two major examples of expansionary fiscal policy are tax cuts and increased government spending. Both of these policies are intended to increase aggregate demand while contributing to deficits or drawing down budget surpluses.
Detailed explanation-3: -Expansionary fiscal policy includes tax cuts, transfer payments, rebates and increased government spending on projects such as infrastructure improvements.
Detailed explanation-4: -Decreasing the discount rate. Purchasing government securities. Reducing the reserve requirement.
Detailed explanation-5: -Lower the short-term interest rates. Reduce the reserve requirements. Expand open market operations (buy securities) Stimulation of economic growth. Increased inflation. Currency devaluation. Decreased unemployment. 06-Dec-2022