Taxes and subsidies — practice question

A government lowered the tax on company profits from 28% to 20%. Which statement most accurately describes this policy?

• AIt is both a contractionary fiscal policy and a supply-side policy.
• BIt is both an expansionary fiscal policy and a supply-side policy.
• CIt is both an expansionary fiscal policy and an expansionary monetary policy.
• DIt is both an expansionary monetary policy and a supply-side policy.