When the economy is in a recession, the government can use expansionary fiscal policy to stimulate...

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When the economy is in a recession, the government can use expansionary fiscal policy to stimulate and encourage economic growth. Which of the following scenarios represent expansionary fiscal policies from botha supply perspective and a demand perspective? Choose one or more: DA The government raises tax rates and cuts Medicare payments. OB. The Federal Reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes. OC The government lowers tax rates and begins a military buildup. O D. The government lowers taxrates and issues a partial refund of taxes that have already been paid. When the economy is in a recession, the government can use expansionary fiscal policy to stimulate and encourage economic growth. Which of the following scenarios represent expansionary fiscal policies from botha supply perspective and a demand perspective? Choose one or more: DA The government raises tax rates and cuts Medicare payments. OB. The Federal Reserve increases the money supply and lowers the interest rate while the government simultaneously reduces future taxes. OC The government lowers tax rates and begins a military buildup. O D. The government lowers taxrates and issues a partial refund of taxes that have already been paid.

Answer rating: 100% (QA)

The correct answer is option D Explanation iFiscal policy ... View the full answer