Which of the following would be an example of expansionary fiscal policy? a) An increase in the individual income tax rate b) Extending the period in which unemployed workers can collect unemployment benefits c) A decrease in the amount of federal grants given to college students d) A decrease in interest rates

Question

Jeremy Cross

Business

31 October, 11:20

Which of the following would be an example of expansionary fiscal policy? a) An increase in the individual income tax rate b) Extending the period in which unemployed workers can collect unemployment benefits c) A decrease in the amount of federal grants given to college students d) A decrease in interest rates

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Answers (1)

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Shyla Nguyen · Answer 1

The correct option is B

Explanation:

Expansionary fiscal policy is the kind of the policy of fiscal which involves increasing the government expenditures, decreasing the taxes or both so that could fight the recessionary pressures.

So, the example, of the policy could be that extend the period in which the workers who are unemployed could collect the benefits of the unemployment.