Select the answer below that best corrects the followingstatement:

"An expansionary fiscal policy

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involves an increase in government purchases or an increase intaxes."

A.

A contractionary fiscal policy involves the decrease of government purchasesand/or a decrease in taxes in order to decrease aggregate demand.

B.

A contractionary fiscal policy involves the increase of government purchasesand/or an increase in taxes in order to decrease aggregate demand.

C.

An expansionary fiscal policy involves the increase of government purchasesand/or a decrease in taxes in order to increase aggregate demand.

D.

An expansionary fiscal policy involves the decrease of government purchasesand/or an increase in taxes in order to increase aggregate demand.

Select the answer below that best corrects the followingstatement:

"A contractionary fiscal policy involves a decrease in government purchases or a decrease intaxes."

A.

An expansionary fiscal policy involves the increase of government purchasesand/or an increase in taxes in order to decrease aggregate demand.

B.

An expansionary fiscal policy involves the decrease of government purchasesand/or a decrease in taxes in order to increase aggregate demand.

C.

A contractionary fiscal policy involves the increase of government purchasesand/or a decrease in taxes in order to decrease aggregate demand.

D.

A contractionary fiscal policy involves the decrease of government purchasesand/or an increase in taxes in order to decrease aggregate demand.