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An expansionary fiscal policyLOADING... involves an increase in government purchases or an increase in​ taxes:
A. An expansionary fiscal policy involves the decrease of government purchases​ and/or an increase in taxes in order to increase aggregate demand.
B. A contractionary fiscal policy involves the increase of government purchases​ and/or an increase in taxes in order to decrease aggregate demand.
C. An expansionary fiscal policy involves the increase of government purchases​ and/or a decrease in taxes in order to increase aggregate demand.
D. A contractionary fiscal policy involves the decrease of government purchases​ and/or a decrease in taxes in order to decrease aggregate demand.

Respuesta :

Answer:

C - An expansionary fiscal policy involves the increase of government purchases​ and/or a decrease in taxes in order to increase aggregate demand

Explanation:

An expansionary fiscal policy is any policy undertaken by the government to increase money supply.

When government makes purchases, money supply increases.

When taxes are cut, disposable income increases which increases aggregate demand and money supply.

I hope my answer helps you.

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