QUESTION 1 Which of the following is considered expansionary fiscal policy? 0 In

Question

QUESTION 1 Which of the following is considered expansionary fiscal policy? 0 Increase in government spending O Increase in taxes 0 Increase in interest rate 0 Increase in money supply QUESTION 2 Which of the following is considered expansionary monetary policy? 0 Increase in government spending o Increase in taxes Increase in interest rate Increase in money supply QUESTION 3 Which of the following is considered contractionary fiscal policy? Increase in government spending Increase in taxes Increase in interest rate unch jsp?course assossment id 300456 1&course; id as

Explanation / Answer

Answer to 1.

a) Increase in Government spending is considered expansionary fiscal policy since it increases the aggregate demand

Answer to 2

d) Increase in money supply is considered as expansionary monetary policy

Answer to 3.

b) Increase in taxes is considered contractionary fiscal policy.

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