Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

Which mix of fiscal and monetary policies would definitely be expansionary?

  • Agovernment spending: decrease; taxes: decrease; money supply: decrease
  • Bgovernment spending: decrease; taxes: increase; money supply: decrease
  • Cgovernment spending: increase; taxes: decrease; money supply: increase
  • Dgovernment spending: increase; taxes: increase; money supply: increase

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