Why are federal government actions that increase deficits considered expansionary fiscal policy and those that decrease deficits

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Why are federal government actions that increase deficits considered expansionary fiscal policy and those that decrease deficits considered contractionary fiscal policy?

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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Question Posted: Feb 07, 2013 05:53 AM

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Why are federal government actions that increase deficits considered expansionary fiscal policy and those that decrease deficits

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Government deficits are increased whenever government purchases rise or taxes fall oth...View the full answer

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